In the latest close session, Delta Air Lines (DAL) was down 4.33% at $47.32. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Heading into today, shares of the airline had lost 2.87% over the past month, outpacing the Transportation sector's loss of 0% and lagging the S&P 500's gain of 1.44%.
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 $1.92, reflecting a 18.64% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $16.18 billion, indicating a 2.88% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.08 per share and revenue of $60.55 billion, indicating changes of -17.53% and -1.77%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Delta Air Lines. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.46% lower. Delta Air Lines currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Delta Air Lines has a Forward P/E ratio of 9.74 right now. This valuation marks a premium compared to its industry average Forward P/E of 9.31.
It is also worth noting that DAL currently has a PEG ratio of 2.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry had an average PEG ratio of 0.88 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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