NEW YORK (TheStreet) --Shares of Delta Airlines (DAL) are higher by 1.86% to $42.77 in mid-morning trading on Monday, following a report by Barron's released over the weekend stating shares of the U.S.'s top four carries could rise 15% to 50% in a year.
Lower fuel costs and a lack of competition is what led to the publication's forecast.
At the end of June 2014, prior to the drop in oil prices, Wall Street had estimated that the four carriers would grow their combined EBITDA by 7% to $22.7 billion. The current forecast is for a growth of 40% to $29.2 billion, Barron's said.
Factors working in Delta's favor include its position in Atlanta, one of the most advantageous flight markets, it is facing less low-fare competition than its peers, its ability to generate good deals on aircrafts, and its plan to cut back on small planes, Barron's noted.
Separately, TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."