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Danaos (DAC) Stock Sinks As Market Gains: What You Should Know

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Danaos (DAC - Free Report) closed at $70 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.38%.

Prior to today's trading, shares of the shipping company had lost 1.23% over the past month. This has was narrower than the Transportation sector's loss of 1.9% and lagged the S&P 500's loss of 0.91% in that time.

Wall Street will be looking for positivity from Danaos as it approaches its next earnings report date. On that day, Danaos is projected to report earnings of $4.75 per share, which would represent year-over-year growth of 107.42%. Meanwhile, our latest consensus estimate is calling for revenue of $188.87 million, up 57.86% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.65 per share and revenue of $646.08 million, which would represent changes of +117.97% and +39.97%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Danaos. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Danaos is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Danaos currently has a Forward P/E ratio of 4.51. This valuation marks a premium compared to its industry's average Forward P/E of 3.75.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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