Delta stock remains a near-unanimous Buy, with 19 of 20 analysts’ ratings of Buy or Strong Buy. The lone holdout rates the shares at Hold. At a price of around $35.30 a share, the upside potential based on a median price target of $54.00 is almost 53%. At the high price target of $77.00, the upside potential is 118.1%. Analysts must be waiting to hear the quarterly earnings report before adjusting ratings or targets.
For the third quarter of fiscal 2023, the consensus revenue forecast is $15.13 billion, down 2.9% sequentially but 8.3% higher year over year. The airline is expected to post EPS of $1.96, down 26.7% sequentially and up 29.8% year over year. For the full fiscal year, analysts anticipate EPS of $6.08, up 89.9%, on sales of $57.55 billion, up 13.8%.
Delta’s stock trades at 5.8 times expected 2023 earnings, 5.2 times estimated 2024 earnings of $6.77 and 4.4 times estimated 2025 earnings of $8.07 per share. Its 52-week trading range is $28.21 to $49.81. The company pays an annual dividend of $0.40 (yield of 1.08%), and its total return for the past 12 months was 20.29%.
Walgreens
Walgreens Boots Alliance Inc. (NYSE: WBA) was one of 2023’s Dogs of the Dow, the 10 stocks that paid the best dividend yield at the end of December 2022. To make that list, a stock typically has to drop in value. At its current pace, Walgreens’ stock is a virtual lock to make the 2024 list. The share price is down 27% over the past 12 months and more than 40% for the year to date. The rich dividend softens the blow, but it can only do so much. Adding to its woes, employees at some 500 of the company’s 9,000 stores are expected to begin a three-day walkout Tuesday.
Of 16 analysts covering the stock, 11 have a Hold rating and just three have a Buy or Strong Buy rating. At a share price of around $22.00, the upside potential based on a median price target of $29.00 is 31.8%. At the high target of $41.00, the upside potential is 86.4%.
For the company’s fourth quarter of fiscal 2023, analysts expect revenue of $34.82 billion. That would be down 1.7% sequentially but up 7.3% year over year. Adjusted EPS are pegged at $0.69, down 31.2% sequentially and 13.8% lower year over year. For the full fiscal year that ended in August, consensus estimates call for EPS of $4.00, down 20.7%, on revenue of $138.5 billion, up 4.4%.
Walgreens’ stock trades at 5.6 times expected 2023 EPS, 6.0 times estimated 2024 earnings of $3.73 and 5.5 times estimated 2025 earnings per share of $4.05. The 52-week trading range is $20.58 to $42.29, and Walgreens pays an annual dividend of $1.92 (yield of 8.66%). Total return over the past 12 months was negative 22.54%.
Originally published at 24/7 Wall St.
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