How to Play DAL Stock After Delta's Strong Q2 Earnings Results
How to Play DAL Stock After Delta's Strong Q2 Earnings Results.
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Delta Air Lines (DAL) shares dipped on July 10 even though the airline reported better-than-expected financials for its second quarter.
But a senior Bernstein analyst, David Vernon, recommends ignoring the price action as noise — and sticking with DAL for the longer-term.
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Delta Air Lines stock has been a lucrative investment in 2026, currently up nearly 25% versus the start of this year.
Speaking with CNBC, Vernon touted management's upbeat Q3 outlook as a sign that DAL is well-positioned to grow despite a volatile geopolitical environment that continues to trigger sharp swings in oil prices.
His "Outperform" rating on Delta Air Lines comes with a $93 price target that indicates potential for another 7% rally from current levels.
Delta benefited from FIFA World Cup demand in its recently concluded quarter, but the Bernstein analyst believes its premium cabin strategy will continue to boost margins through year-end.
Note that DAL shares currently pay a dividend yield of 0.98% as well, which makes them even more attractive to own, at least for income-focused investors.
What's also worth mentioning is that the derivative market remains positive on Delta Air Lines for the remainder of this year as well.
According to Barchart, the put-to-call ratio on contracts expiring mid-December sits at 0.86x at the time of writing, indicating a bullish skew.
And the upper price on those options contracts is set at about $103 currently, signaling nearly 18% upside potential in the second half of 2026.
That said, the near-term picture for Delta Air Lines shares isn't nearly as compelling, given that they have a history of closing both July and August slightly in the red.
Interestingly, a number of other Wall Street analysts are actually more bullish on what the future holds for DAL stock than Bernstein's David Vernon.
According to Barchart, the consensus rating on Delta Air Lines sits at "Strong Buy," with the mean price target of nearly $101 indicating potential upside of more than 15% from current levels.
