Delta Air Lines (NYSE:DAL) will report earnings on Oct. 11 before the bell. The Atlanta-based air carrier has long since recovered from the disasters of the last decade that forced the company to declare bankruptcy. Though Delta has struggled amid rising oil prices, its high profit growth and a low valuation bode well for the future of Delta stock. And given its recent history regarding earnings, the upcoming report will likely do little to change the valuation proposition of DAL stock.

Expect Higher Revenue and Earnings Despite Oil Prices

Analysts expect third-quarter Delta earnings to come in at $1.76 per share. This would represent a 12.2% increase from the same quarter last year when the company reported earnings per share (EPS) of $1.57. Revenues of $11.97 billion would also show an 8.2% improvement from the year-ago number of $11.06 billion.

The stock has struggled to gain traction this year. Rising oil prices have inspired negative investor sentiment. The stock trades about 9% above its 52-week high. However, it has lost about 6.4% of its value since Jan. 1.

DAL Stock Stands as the Best Legacy-Carrier Stock

Despite rising oil prices, I believe DAL stock has become the best equity to own among the legacy carriers. For this reason, I think investors should if not buy, at least look for the right time to buy.

I do not say this because of earnings. The company has beaten analyst estimates for the last several quarters. I see no reason why they will not report a higher number again. Honestly, I expect to hear little noteworthy news from the upcoming report.

Moreover, the negative sentiment has also given DAL stock a low price-to-earnings (P/E) ratio. If annual estimates hold, the stock currently trades at a forward PE of around 9.5. Moreover, Wall Street forecasts earnings growth of 12.6% and 16.6% for this year and next year respectively. They also expect this growth to remain in the double-digits for the next five years as well. This has continued as Delta raised fares to counter rising fuel costs. They also increased baggage fees by $5 per bag.

Such increases help on the dividend front as well. After years of struggle, Delta resumed paying dividends in 2013. The company has increased this payout every year, and substantial increases at that. For 2018, the annual dividend comes in at $1.40 per share, or around 2.65%. The dividend has more than doubled from the 2016 payout of 68 cents per share.

Delta also appears to have become Warren Buffett’s favorite legacy airline. During the year, he has added more DAL stock as well as the stock of Southwest Airlines (NYSE:LUV). Stakes in fellow legacy peers American Airlines (NASDAQ:AAL) and United Continental Holdings (NYSE:UAL) have seen cuts in the heavily-watched Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) portfolio during the same period.

The Bottom Line on DAL Stock

Rising oil prices may slow, but cannot stop, the impressive profit growth of DAL stock. Delta, like its peers, has come under pressure amid rising oil prices. While this has increased costs, the company mitigated the increases through increased fares and higher baggage fees.

As a result, the company expects double-digit profit increases to continue. Assuming the pattern holds, the substantial dividend increases holders of DAL stock have enjoyed since 2013 will likely remain.

Warren Buffett has likely seen these same things, as his stake in DAL stock continues to grow. Delta offers a single-digit forward P/E ratio, a rising dividend and profit growth that will likely continue in a high-oil-price environment. For these reasons, I believe the upcoming earnings report will do little to change the company’s value proposition.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting.