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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Delta Air Lines (DAL - Free Report) . DAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.35. This compares to its industry's average Forward P/E of 8.83. Over the last 12 months, DAL's Forward P/E has been as high as 11.37 and as low as 7.26, with a median of 8.58.
Investors will also notice that DAL has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DAL's PEG compares to its industry's average PEG of 0.74. Over the last 12 months, DAL's PEG has been as high as 2 and as low as 0.39, with a median of 0.55.
Another valuation metric that we should highlight is DAL's P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.43. Over the past 12 months, DAL's P/B has been as high as 3.21 and as low as 2.28, with a median of 2.88.
These are only a few of the key metrics included in Delta Air Lines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DAL looks like an impressive value stock at the moment.
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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Delta Air Lines (DAL - Free Report) . DAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.35. This compares to its industry's average Forward P/E of 8.83. Over the last 12 months, DAL's Forward P/E has been as high as 11.37 and as low as 7.26, with a median of 8.58.
Investors will also notice that DAL has a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DAL's PEG compares to its industry's average PEG of 0.74. Over the last 12 months, DAL's PEG has been as high as 2 and as low as 0.39, with a median of 0.55.
Another valuation metric that we should highlight is DAL's P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.43. Over the past 12 months, DAL's P/B has been as high as 3.21 and as low as 2.28, with a median of 2.88.
These are only a few of the key metrics included in Delta Air Lines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DAL looks like an impressive value stock at the moment.