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Is Delta Air Lines (DAL) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.05. This compares to its industry's average Forward P/E of 8.66. Over the past 52 weeks, DAL's Forward P/E has been as high as 11.63 and as low as 5.59, with a median of 7.04.
We also note that DAL holds a PEG ratio of 0.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DAL's industry has an average PEG of 0.25 right now. Within the past year, DAL's PEG has been as high as 0.21 and as low as 0.16, with a median of 0.19.
Another notable valuation metric for DAL is its P/B ratio of 3.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.24. Over the past 12 months, DAL's P/B has been as high as 5.95 and as low as 3.08, with a median of 4.03.
Finally, investors should note that DAL has a P/CF ratio of 6.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.56. DAL's P/CF has been as high as 11.07 and as low as 5.23, with a median of 7.30, all within the past year.
Another great Transportation - Airline stock you could consider is JetBlue Airways (JBLU - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, JetBlue Airways holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 5.24. JBLU's P/B has been as high as 0.91, as low as 0.57, with a median of 0.72 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines and JetBlue Airways are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL and JBLU feels like a great value stock at the moment.
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Is Delta Air Lines (DAL) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.05. This compares to its industry's average Forward P/E of 8.66. Over the past 52 weeks, DAL's Forward P/E has been as high as 11.63 and as low as 5.59, with a median of 7.04.
We also note that DAL holds a PEG ratio of 0.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DAL's industry has an average PEG of 0.25 right now. Within the past year, DAL's PEG has been as high as 0.21 and as low as 0.16, with a median of 0.19.
Another notable valuation metric for DAL is its P/B ratio of 3.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.24. Over the past 12 months, DAL's P/B has been as high as 5.95 and as low as 3.08, with a median of 4.03.
Finally, investors should note that DAL has a P/CF ratio of 6.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.56. DAL's P/CF has been as high as 11.07 and as low as 5.23, with a median of 7.30, all within the past year.
Another great Transportation - Airline stock you could consider is JetBlue Airways (JBLU - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Furthermore, JetBlue Airways holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 5.24. JBLU's P/B has been as high as 0.91, as low as 0.57, with a median of 0.72 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines and JetBlue Airways are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL and JBLU feels like a great value stock at the moment.