Still one of my favorite investment stories comes from Warren Buffett. He was asked the secret to becoming a millionaire. And this is how he answered: Put a billion dollars into the airline industry…soon enough you will become a millionaire.
Over the long haul that is not true…but yes, airline stocks fly by a turbulent pattern that often has investors grabbing for the sickness bag. On the other hand there are times they are one of the hottest groups around and investors not on board will miss out on a great profit ride.
That time seems to be now, especially for Delta Air Lines (DAL). At the start of April they released their monthly operational metrics. The result was a 10% lift off in shares in the 2 days that followed boosting DAL to a POWR Rating of A – Strong Buy.
This should not be a shock to anyone because the industry is one of the most economically sensitive. So when the economy is in expansion mode, airlines are right there enjoying the ride.
But if you are going to invest in this industry, you need to cast your lot with one of the most consistent players to avoid any ferocious descent. Delta certainly fits that bill with 18 of the last 20 quarters being earnings beats.
Lastly, the company is putting cash to good use for investors. Ample buybacks, lofty 2.5% dividend and strategic long term investments in capacity. With all these positive catalysts at play you might want to buckle up some of these shares in your portfolio.
Delta Air Lines (DAL) is not the only stock enjoying a POWR Rating of A – Strong Buy. Microsoft (MSFT), Verizon (VZ), Mastercard (MA), Oracle (ORCL), and Nike (NKE) have also been awarded this coveted rating. Discover all the stocks enjoying a Strong Buy rating at https://stocknews.com/best-stocks/.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...