In the latest trading session, Delta Air Lines (DAL) closed at $62.15, marking a +2.44% move from the previous day. This move outpaced the S&P 500's daily gain of 0.91%. Meanwhile, the Dow experienced a rise of 1.43%, and the technology-dominated Nasdaq saw an increase of 0.67%.
Shares of the airline witnessed a gain of 0.36% over the previous month, trailing the performance of the Transportation sector with its gain of 1.07%, and outperforming the S&P 500's loss of 1.24%.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. The company's earnings per share (EPS) are projected to be $1.75, reflecting a 5.41% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $15.84 billion, showing a 1.78% escalation compared to the year-ago quarter.
DAL's full-year Zacks Consensus Estimates are calling for earnings of $6.02 per share and revenue of $63.05 billion. These results would represent year-over-year changes of -2.27% and +2.28%, respectively.
Investors might also notice recent changes to analyst estimates for Delta Air Lines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% fall in the Zacks Consensus EPS estimate. Right now, Delta Air Lines possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Delta Air Lines is holding a Forward P/E ratio of 10.08. Its industry sports an average Forward P/E of 10.08, so one might conclude that Delta Air Lines is trading at no noticeable deviation comparatively.
One should further note that DAL currently holds a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.71 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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