Just noticed Delta (DAL) is up 4.3% over the past month, actually outperforming the S&P 500. Their latest Q4 earnings came in better than expected with $1.55 EPS versus the consensus of $1.53, so that's a small beat. Revenue hit $16B which also topped estimates at $15.63B.

The interesting part is the guidance they issued. Management is expecting Q1 2026 adjusted EPS somewhere in the 50-90 cents range, with operating margins projected at 4.5-6%. For the full year, they're guiding for $6.5-$7.5 per share, which would represent about 20% year-over-year growth. Free cash flow is expected to land in the $3-4B range.

However, there's a catch here. Higher labor costs dragged earnings down 16% year-over-year, and the government shutdown also impacted domestic revenue. Their load factor (seat occupancy) came in at 82%, which was a bit light. If you're doing delta trading or looking at airline stocks, it's worth noting that estimates have actually been trending downward since this earnings release, despite the initial positive reaction.

The VGM score is a B overall, with strong value fundamentals (A grade) but weaker growth and momentum metrics. Analysts have it rated as a Hold (Zacks Rank 3), so expectations are pretty muted for the coming months. The delta trading setup looks more sideways than bullish at this point.