This is my first attempt to write a stock review to find a stock to add into my portfolio. Hope you all will like it. FIRST AND FOREMOST, PLEASE READ the DISCLAIMER BELOW.
Disclaimer This article is not a stock advise to buy or sell a stock. This is solely for the education purpose. I do not own any DAL shares, affiliate with DAL or has professional qualifications on stock and share at the point of writing this article. Please do your due diligence and seek professional advise before you buy or sell this stock.
DAL Daily Chart from Dec 22 to Apr 23 with Stoch RSI (Plot using Tradingview)
Over the weekend, I attended an investment class and is using of one of the indicator to find a stock to buy for my portfolio. Today I will share my research on $Delta Air Lines(DAL)$ which will be have earning report on their 1Q 2023 this coming 13 April 2023.
On the chart above I am using a TA (Technical Analysis) Stochastic RSI (S-RSI) to determine whether the stock is over sold (<0.2) or over brought (<0.8), S-RSI will fluctuates between 0 and 1, with readings below 0.2 considered oversold and those above 0.8 reflecting overbought conditions.
As the chart above I circle a few areas namely A,B,C (Blue Circle), 1,2,3 (Red Circle) and Orange( the current crossing).
As we observed at ABC, the S-RSI Blue line goes below S-RSI Yellow line the stocks price will drop especially when it is at the over brought range indicate in B and C.
We also observed at Circle 123, when S-RSI Blue line crossed and go above S-RSI Yellow line and in the over sold range (below 0.2) the stock price rally.
The orange circle show the S-RSI Blue (74.2 or 0.742) and S-RSI Yellow (76.8 or 0.768) crossing again but it could goes either directions and it is just below the over brought line. So it is a Buy or Sell? Let look at other indicators.
5 years daily chart of DAL Source : Yahoo Finance Interactive Chart
We can see the pass 5 years, the price is between 60 (2019) and lowest (Apr 2020) 18. The price of DAL has recently drop from 40 to 30 and now recovered to 33. Is it a discount?
DAL stock analysis. Source: stockanalysis.com
Some of us will look for experts view, note that we still have to do our dd and we only take it as an reference as we are not the experts, well most of 24 analysts say it is a Buy with Target 40.4 this Apr to 85.05 next year with average 52.79 and median 49.47. So is 33 a discount now?
Hedge fund increases holding of DAL in last quarter. Source: Etoro
Some Hedge funds added DAL in the last quarter, thus hedge funds see $Delta Air Lines(DAL)$ has give consistent dividend and price and will like to add them in their portfolio. This is like taking a immunity injection.
Book Value Per Share Last 5 Quarters Source: stockanalysis.com
DAL has beat the earning forecast for the last 5 Quarters. As air travel resume even if the FED is going to increase the interest. Air travel will be a norm as many choose to travel after a long lock down. DAL maybe a good position between other Airlines as Travellers are price sensitive. Oil price will be sensitive to airline but it does not hamper travelling as travel is still a fast option and US are use to travel by planes. DAL is definitely over price vs book value per share. But is a discount from their median 49-55 range. So it is a good buy?
I will probably buy at a better price. But at the long run, I can't see air travel will goes south unless another pandemic strikes. What is your pick?
Comments
Travel stocks can be on rebound as more cities have lifted off covid measures. I bet travel insurance will also increase in sales but this year have too much water elements, insurance payout will be plenty. Services will see a reverse and I am focus on such sector. Hope every have a good run. [Call] [Claw]