Analysts are bullish on Delta Air Lines, but investors should tread carefully before making decisions
Atlanta: When it comes to buying or selling stocks, many folks look to analysts for guidance. You know, those reports that come out from brokerage firms? They can really sway a stock’s price, but how much should we trust them?
Before diving into that, let’s see what the big players on Wall Street think about Delta Air Lines (DAL). Right now, Delta has a super strong average brokerage recommendation of 1.00, which is basically a “Strong Buy.” This score comes from 21 different brokerage firms, all of which are saying “Buy.”
But hold on a second! Just because everyone’s saying “Buy” doesn’t mean you should jump in without thinking. Studies show that these recommendations don’t always lead to the best investment choices. Why? Well, brokerage firms often have their own interests at heart, which can skew their ratings.
For instance, they tend to give five “Strong Buy” ratings for every one “Strong Sell.” So, their advice might not always align with what’s best for regular investors like you and me. It’s smart to use their recommendations to back up your own research instead of relying on them completely.
Speaking of research, there’s this tool called Zacks Rank that’s pretty handy. It rates stocks based on earnings estimate revisions, which can give you a clearer picture of where a stock might be headed. So, if you’re looking at Delta, it’s worth checking how its Zacks Rank lines up with those broker recommendations.
Now, let’s talk about Delta’s earnings. The Zacks Consensus Estimate for this year has actually gone up by 6.6% recently, which is a good sign. Analysts are feeling optimistic about Delta’s earnings, and that could mean the stock might rise soon.
With all that in mind, Delta’s current “Buy” rating could be a solid indicator for investors. Just remember to do your homework and not rely solely on what the analysts say.
