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

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Delta Air Lines (DAL - Free Report) closed at $38.23 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq lost 4.19%.

Coming into today, shares of the airline had gained 10.06% in the past month. In that same time, the Transportation sector lost 0.53%, while the S&P 500 gained 3.78%.

Delta Air Lines will be looking to display strength as it nears its next earnings release. In that report, analysts expect Delta Air Lines to post earnings of $2.05 per share. This would mark year-over-year growth of 42.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.8 billion, up 7.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.40 per share and revenue of $55.27 billion, which would represent changes of +68.75% and +9.27%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Delta Air Lines. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Delta Air Lines is currently a Zacks Rank #3 (Hold).

Investors should also note Delta Air Lines's current valuation metrics, including its Forward P/E ratio of 6.97. For comparison, its industry has an average Forward P/E of 10.46, which means Delta Air Lines is trading at a discount to the group.

Investors should also note that DAL has a PEG ratio of 0.2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.31 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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