In the latest market close, Delta Air Lines (DAL) reached $50.92, with a +1.27% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.52%.
The airline's stock has climbed by 23.08% in the past month, exceeding the Transportation sector's gain of 12.07% and the S&P 500's gain of 9.81%.
Analysts and investors alike will be keeping a close eye on the performance of Delta Air Lines in its upcoming earnings disclosure. On that day, Delta Air Lines is projected to report earnings of $1.97 per share, which would represent a year-over-year decline of 16.53%. Alongside, our most recent consensus estimate is anticipating revenue of $16.13 billion, indicating a 3.2% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.26 per share and a revenue of $60.9 billion, representing changes of -14.61% and -1.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.25% lower within the past month. As of now, Delta Air Lines holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Delta Air Lines is currently exchanging hands at a Forward P/E ratio of 9.56. Its industry sports an average Forward P/E of 9.52, so one might conclude that Delta Air Lines is trading at a premium comparatively.
It's also important to note that DAL currently trades at a PEG ratio of 2.45. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 28% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
