In the latest trading session, Delta Air Lines (DAL) closed at $63.83, marking a -1.19% move from the previous day. This move lagged the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.29%.
The airline's stock has dropped by 8.29% in the past month, falling short of the Transportation sector's gain of 4.13% and the S&P 500's loss of 1.33%.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. In that report, analysts expect Delta Air Lines to post earnings of $0.72 per share. This would mark year-over-year growth of 56.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.57 billion, indicating a 3.74% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.22 per share and a revenue of $65.96 billion, signifying shifts of +24.05% and +4.1%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Delta Air Lines. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Delta Air Lines is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Delta Air Lines is currently exchanging hands at a Forward P/E ratio of 8.95. This indicates a discount in contrast to its industry's Forward P/E of 9.
It is also worth noting that DAL currently has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.51.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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