11 Best Freight Stocks To Buy Now

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

Number of Hedge Fund Holders: 51

Delta Air Lines, Inc. (NYSE:DAL) ranks fifth on our list of the best freight stocks to buy now. Delta Cargo is responsible for worldwide shipping. Its freight service allows individuals to ship commodities domestically and across borders.

Delta Air Lines, Inc. (NYSE:DAL) is a popular stock among investors. At the end of the first quarter of 2024, Delta Air Lines, Inc. (NYSE:DAL) was spotted on 51 investors’s portfolios. These funds held collective positions worth $1.81 billion. Of those, GMT Capital held a stake worth $323.51 million. Investors believe that the company’s operational performance and stellar customer experience set it apart from its competitors.

Delta Air Lines, Inc. (NYSE:DAL) recently announced strong earnings for the fiscal first quarter. The company generated a revenue of $13.75 billion, up by 7.75% year-over-year, and beat revenue estimates by $953.36 million. The company logged an EPS of $0.45 and beat EPS estimates by $0.09. Delta Air Lines, Inc. (NYSE:DAL) is expected to grow its earnings by 6.5% and revenue by 6.2% in 2024.

In 2023, the company significantly improved its financial position and maintained strong profitability, ending the year with $2 billion in free cash flow. The company also paid off almost $4.1 billion in debt and finance lease obligations. In 2023, the company’s cargo segment, responsible for airline freight gateways, reported revenue worth $723 million.

Here are some comments from Oakmark Funds Q1 2024 investor letter:

“Delta Air Lines, Inc. (NYSE:DAL) is a leading global airline. Of the big three U.S.-based airlines (Delta, United and American), we see Delta as the most competitively advantaged. We believe the company’s years of industry-leading operational performance and investments in the customer experience have established Delta as the premium brand in the industry. We also think its geographically optimal hubs, high local market share, robust loyalty program and unique corporate culture all support healthy returns on capital. Delta currently trades at 6x our estimate of normalized earnings per share. We believe this is an attractive valuation for a competitively advantaged and growing business in an out-of-favor industry.”