Delta Air Lines Earnings: Stock Set for Post-Earnings Boost
Delta Air Lines (DAL) is set to release its fiscal third-quarter earnings on October 9, 2023. Despite a recent pullback, DAL stock has a 47.2% six-month lead over United Airlines and is supported at the $56 level. Options traders anticipate a 7.9% move post-earnings, while short-term traders have been bearish but could boost the stock if they unwind their positions.
DAL stock is close to its 12-month trendline, with a 69% chance of a 5.6% gain within a month, outperforming American Airlines. Its Schaeffer's Volatility Index (SVI) of 57% is low, indicating low volatility expectations compared to Airbnb. Historically, DAL has secured significant gains after earnings, including a 23.4% next-day pop in April. Its Schaeffer's Volatility Scorecard (SVS) of 88 out of 100 suggests it has outperformed volatility estimates over the past year, similar to Lowes. Longer-term returns are even better, with an average 11.5% pop over the next three months. A long-term bullish trendline could help DAL bounce back with impressive quarterly results, rivaling American Airlines' performance.
As Delta Air Lines prepares to report its third-quarter earnings, investors should note the stock's strong performance over the past six months and its potential for significant gains post-earnings. The stock's proximity to its trendline and low volatility expectations suggest a positive outlook, supported by historical performance and long-term trends.
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