We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
With slumping oil prices, a number of industries in the broader transportation world look to benefit. One that should definitely come to mind in this type of environment is the airline space. This area tends to see a sizable percentage of its costs go to fuel, so a reduced—or at least stable—oil price should be great news for this segment.
We have definitely seen airline companies bounce back in recent months, partially as a result of these lower oil prices, though a stronger U.S. economy isn’t hurting matters either. No wonder the industry currently has an industry rank in the top 5%, and why not a single stock in the group has a Zacks Rank #5 (Strong Sell), out of nearly two dozen companies.
But which company do you want to focus on in this impressive group?
Well, one that might deserve a closer look is Delta Air Lines (DAL - Free Report) . This might be one of the best positioned in the space, at least if we look to earnings estimate revisions as a guide.
Recent Estimates
In the last two months, analysts covering Delta stock have been raising their estimates for the company’s earnings, almost universally. We have seen five estimates go higher in the current quarter, and six go higher for the current year time frame.
This has also helped to boost the consensus estimate for DAL stock, as we have seen the current quarter projection increase by 3.8% in the past two months and over 7% for the next quarter. The full year estimate has moved higher by over five percent in the same time frame, and analysts now expect year-over-year growth for the company on the earnings front too.
The most recent estimates on DAL stock have also been higher, and the company has a great history in earnings season and can clearly live up to expectations on a regular basis. In fact, Delta has only missed earnings estimates once in the past three years, so it certainly has a good track record.
Delta Air Lines, Inc. Price, Consensus and EPS Surprise
No wonder DAL has earned itself a Zacks Rank #1 (Strong Buy) rating, and why we are looking for more strength out of this name in the near future too.
Bottom Line
There are numerous reasons to like the airline group right now. The economy is strong, oil prices are stable, and the industry faces relatively little pricing pressure thanks to an intense period of mergers a few years ago.
But while there are many quality companies in the space, one that should be on your radar above all others right now is Delta. The company has great prospects on the earnings estimate revision front, a strong value score, and is a ‘strong buy’ rated stock too. So, if you are looking for an airline stock to ride in your portfolio, definitely give DAL a closer look this summer.
Want more from this author?
Make sure to check out his podcast, the Dutram Report, which features interviews with executives from around the ETF and broader stock community. Check out the recent episode which featured the Chief Medical Officer from Kite Pharma, who spoke about the rapidly changing world of cancer research and immunotherapy in the link below!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Bull of the Day: Delta Air Lines (DAL)
With slumping oil prices, a number of industries in the broader transportation world look to benefit. One that should definitely come to mind in this type of environment is the airline space. This area tends to see a sizable percentage of its costs go to fuel, so a reduced—or at least stable—oil price should be great news for this segment.
We have definitely seen airline companies bounce back in recent months, partially as a result of these lower oil prices, though a stronger U.S. economy isn’t hurting matters either. No wonder the industry currently has an industry rank in the top 5%, and why not a single stock in the group has a Zacks Rank #5 (Strong Sell), out of nearly two dozen companies.
But which company do you want to focus on in this impressive group?
Well, one that might deserve a closer look is Delta Air Lines (DAL - Free Report) . This might be one of the best positioned in the space, at least if we look to earnings estimate revisions as a guide.
Recent Estimates
In the last two months, analysts covering Delta stock have been raising their estimates for the company’s earnings, almost universally. We have seen five estimates go higher in the current quarter, and six go higher for the current year time frame.
This has also helped to boost the consensus estimate for DAL stock, as we have seen the current quarter projection increase by 3.8% in the past two months and over 7% for the next quarter. The full year estimate has moved higher by over five percent in the same time frame, and analysts now expect year-over-year growth for the company on the earnings front too.
The most recent estimates on DAL stock have also been higher, and the company has a great history in earnings season and can clearly live up to expectations on a regular basis. In fact, Delta has only missed earnings estimates once in the past three years, so it certainly has a good track record.
Delta Air Lines, Inc. Price, Consensus and EPS Surprise
Delta Air Lines, Inc. Price, Consensus and EPS Surprise | Delta Air Lines, Inc. Quote
No wonder DAL has earned itself a Zacks Rank #1 (Strong Buy) rating, and why we are looking for more strength out of this name in the near future too.
Bottom Line
There are numerous reasons to like the airline group right now. The economy is strong, oil prices are stable, and the industry faces relatively little pricing pressure thanks to an intense period of mergers a few years ago.
But while there are many quality companies in the space, one that should be on your radar above all others right now is Delta. The company has great prospects on the earnings estimate revision front, a strong value score, and is a ‘strong buy’ rated stock too. So, if you are looking for an airline stock to ride in your portfolio, definitely give DAL a closer look this summer.
Want more from this author?
Make sure to check out his podcast, the Dutram Report, which features interviews with executives from around the ETF and broader stock community. Check out the recent episode which featured the Chief Medical Officer from Kite Pharma, who spoke about the rapidly changing world of cancer research and immunotherapy in the link below!
How Kite Pharma Is Revolutionizing the Fight Against Cancer
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>