Delta (DAL) Upgraded to Buy: What Does It Mean for the Stock?

Core Viewpoint - Delta Air Lines (DAL) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Delta suggest an improvement in the company's underlying business, potentially leading to higher stock prices [5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Delta's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Delta - For the fiscal year ending December 2025, Delta is expected to earn $5.76 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 13.6% over the past three months [8].