Cowen Spots United Airlines (24.7% EPS Growth) and Delta (20.8%) as Cheap Single‑Digit P/E S&P Picks

TD Cowen has put two big carriers in the spotlight inside the S&P 500: United Airlines (NYSE: UAL) and Delta Air Lines (NYSE: DAL). In a client note the firm flagged both as rare examples among S&P names trading at single-digit forward P/Es that also show meaningful EPS growth on the 2026 consensus figures.

The math is simple and punchy. Cowen counts 47 S&P constituents sitting on a single-digit P/E versus calendar‑year 2026 consensus EPS. About 14 of those are penciled in to grow faster than the wider index. United ranks sixth on that list with an expected 24.7% EPS gain; Delta comes in ninth at roughly 20.8%.

That combination - cheap multiples plus above‑index earnings growth - is what has the analysts leaning in. Airline valuations took a beating after the pandemic and have only partially recovered, moving from the low single digits into the high single digits on P/E. Sentiment, Cowen notes, is no longer frozen: structural shifts since the pandemic have let full‑service carriers tighten up margins and claw back pricing power.

There are company‑specific angles as well. United gets a leg up from a modernizing fleet that should lower unit costs over time. Both carriers are beefing up loyalty partnerships, which lifts ancillary revenue and makes revenue streams stickier. Cowen also points to relatively cleaner capital allocation stories at United and Delta versus some peers - buybacks, balance‑sheet moves and the like that matter to multiple expansion.

On the industry side, Cowen sees a friendlier backdrop heading into 2026: no looming policy disruptions, easier year‑over‑year comparisons after a demand slowdown in the first half of 2025, and more predictable travel patterns from customers. The analysts add that a shift toward easier monetary policy would help household spending and, by extension, airline demand and valuations.

Bottom line from the note: within the small set of cheap S&P names with above‑index growth, United and Delta stand out as companies that could outperform either the airline group or the broader market - at least according to Cowen's scenario analysis and the consensus EPS trajectory.

Two tidy figures to remember: 24.7% and 20.8% - consensus EPS growth that separates these carriers from most other single‑digit P/E stocks. Will the market re-rate them further on that story?