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

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Danaos (DAC - Free Report) closed the most recent trading day at $74.05, moving +1.38% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the shipping company had gained 5.08% in the past month. In that same time, the Transportation sector gained 2.83%, while the S&P 500 gained 0.22%.

Danaos will be looking to display strength as it nears its next earnings release. 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.

It is also important to note the recent changes to analyst estimates for Danaos. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaos currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Danaos is currently trading at a Forward P/E ratio of 3.4. This valuation marks a discount compared to its industry's average Forward P/E of 3.7.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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