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Delta Air Lines (DAL) Advances While Market Declines: Some Information for Investors

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Delta Air Lines (DAL - Free Report) closed the most recent trading day at $40.60, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.

Coming into today, shares of the airline had gained 8.49% in the past month. In that same time, the Transportation sector gained 3.62%, while the S&P 500 gained 3.56%.

The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. The company is expected to report EPS of $0.35, up 40% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $12.95 billion, indicating a 1.47% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.57 per share and a revenue of $58.41 billion, indicating changes of +5.12% and +0.63%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Delta Air Lines. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.87% decrease. Delta Air Lines is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Delta Air Lines is currently exchanging hands at a Forward P/E ratio of 6.1. Its industry sports an average Forward P/E of 8.41, so one might conclude that Delta Air Lines is trading at a discount comparatively.

It's also important to note that DAL currently trades at a PEG ratio of 0.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DAL's industry had an average PEG ratio of 0.55 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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