Prediction: Delta Air Lines Stock Will Soar Over the Next Few Years. Here's 1 Reason Why.
It's no secret that President Donald Trump's trade war is negatively impacting airlines, at least in the near term, but that shouldn't detract from how attractive stocks like Delta Air Lines (NYSE: DAL) are over the long term.The key reason for this, and why this stock in particular could appreciate substantially in the coming years, comes down to one word: resiliency.Running an airline is a cyclical business; it always has been and always will be. When the economy is booming, leisure travelers and businesses feel comfortable spending on airline tickets, but when growth slows, they pull back. Moreover, the industry was traditionally susceptible to changes in demand, as airlines have stubbornly stuck to their routes and flight volumes as they waited for the next upturn to arrive.Continue reading
It's no secret that President Donald Trump's trade war is negatively impacting airlines, at least in the near term, but that shouldn't detract from how attractive stocks like Delta Air Lines (NYSE: DAL) are over the long term.
The key reason for this, and why this stock in particular could appreciate substantially in the coming years, comes down to one word: resiliency.
Running an airline is a cyclical business; it always has been and always will be. When the economy is booming, leisure travelers and businesses feel comfortable spending on airline tickets, but when growth slows, they pull back. Moreover, the industry was traditionally susceptible to changes in demand, as airlines have stubbornly stuck to their routes and flight volumes as they waited for the next upturn to arrive.
