10 Most Undervalued Growth Stocks to Buy Now

2. Delta Air Lines, Inc. (NYSE:DAL)

Forward P/E ratio: 6.17

Revenue CAGR last 5 years: 20.28%

Number of Hedge Fund Holders: 84

​Delta Air Lines, Inc. (NYSE:DAL) is a major US airline operating over 5,400 daily flights to more than 325 destinations worldwide. The company’s operations encompass passenger transport, cargo services, aircraft maintenance, and travel packages. DAL has a strong focus on premium offerings, which allows it to attract more financially potent business travelers.

Delta Air Lines, Inc. (NYSE:DAL) reported revenue growth of 3.3% to a new absolute record for the latest March quarter. The company delivered $1.3 billion in free cash flow and maintained strong operational performance with leading on-time performance among network peers. However, February and March reflected a more challenging macro environment than initially planned, with growth largely stalling due to broad economic uncertainty around global trade.

In response to market conditions, Delta Air Lines, Inc. (NYSE:DAL) is taking decisive actions by keeping second-half capacity growth flat over last year, with domestic main cabin seats declining to align supply with demand. The company continues to see greater resilience in international and diversified revenue streams, including premium and loyalty, reflecting the underlying strength of its core consumer. For the June quarter, DAL expects double-digit operating margins (vs. 5% for the March quarter) and pretax income of $1.5 billion to $2 billion on revenue that is essentially flat to last year. While not providing an updated full-year outlook due to broad macro uncertainty, the company remains well-positioned to deliver solid profitability and meaningful cash flow in 2025. We believe the current forward P/E of 6.17 represents a bargain on an otherwise healthy and high growth company, making DAL one of the most undervalued stocks on our list.