Delta Air Lines (DAL) ended the recent trading session at $57.84, demonstrating a -2.05% change from the preceding day's closing price. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.34%.
Heading into today, shares of the airline had gained 5.48% over the past month, outpacing the Transportation sector's gain of 0.13% and the S&P 500's gain of 1.67%.
The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company is expected to report EPS of $1.48, down 1.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.77 billion, up 0.59% from the prior-year quarter.
DAL's full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $61.84 billion. These results would represent year-over-year changes of -8.6% and +0.32%, respectively.
Investors should also note any recent changes to analyst estimates for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Delta Air Lines presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Delta Air Lines is presently trading at a Forward P/E ratio of 10.49. This signifies a premium in comparison to the average Forward P/E of 9.75 for its industry.
We can additionally observe that DAL currently boasts a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline industry had an average PEG ratio of 0.86 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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