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Delta Air Lines (DAL) Stock Sinks As Market Gains: What You Should Know

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Delta Air Lines (DAL - Free Report) closed the most recent trading day at $35.47, moving -0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 1.68%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Coming into today, shares of the airline had lost 7.56% in the past month. In that same time, the Transportation sector lost 5.79%, while the S&P 500 lost 6.68%.

Delta Air Lines will be looking to display strength as it nears its next earnings release. On that day, Delta Air Lines is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 126.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.83 billion, up 37.23% from the year-ago period.

DAL's full-year Zacks Consensus Estimates are calling for earnings of $5.16 per share and revenue of $56.45 billion. These results would represent year-over-year changes of +61.25% and +11.61%, respectively.

Investors should also note any recent changes to analyst estimates for Delta Air Lines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Delta Air Lines is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Delta Air Lines is holding a Forward P/E ratio of 6.92. This valuation marks a discount compared to its industry's average Forward P/E of 11.86.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

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