Delta Air Lines ( DAL Quick Quote DAL – Free Report ) closed the most recent trading day at $40.63, moving +0.1% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.
Shares of the airline witnessed a gain of 10.78% over the previous month, beating the performance of the Transportation sector with its gain of 9.6% and the S&P 500’s gain of 5.28%.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. It is anticipated that the company will report an EPS of $1.16, marking a 21.62% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.13 billion, up 5.17% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.11 per share and a revenue of $57.38 billion, indicating changes of +90.94% and +13.44%, respectively, from the former year.
Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. Delta Air Lines presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Delta Air Lines is currently exchanging hands at a Forward P/E ratio of 6.65. This signifies a discount in comparison to the average Forward P/E of 8.05 for its industry.
It is also worth noting that DAL currently has a PEG ratio of 0.21. 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. By the end of yesterday’s trading, the Transportation – Airline industry had an average PEG ratio of 0.36.
The Transportation – Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 196, placing it within the bottom 23% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
