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Here's Why Delta Air Lines (DAL) Fell More Than Broader Market
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In the latest market close, Delta Air Lines (DAL - Free Report) reached $41.57, with a -1.4% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Heading into today, shares of the airline had gained 5.45% over the past month, outpacing the Transportation sector's gain of 3.74% and the S&P 500's gain of 4.83% in that time.
The investment community will be paying close attention to the earnings performance of Delta Air Lines in its upcoming release. On that day, Delta Air Lines is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $12.95 billion, up 1.47% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.59 per share and a revenue of $57.91 billion, indicating changes of +5.44% and -0.25%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Delta Air Lines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.62% downward. Currently, Delta Air Lines is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Delta Air Lines is at present trading with a Forward P/E ratio of 6.4. This denotes a discount relative to the industry's average Forward P/E of 8.38.
One should further note that DAL currently holds a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.53.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why Delta Air Lines (DAL) Fell More Than Broader Market
In the latest market close, Delta Air Lines (DAL - Free Report) reached $41.57, with a -1.4% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.12%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Heading into today, shares of the airline had gained 5.45% over the past month, outpacing the Transportation sector's gain of 3.74% and the S&P 500's gain of 4.83% in that time.
The investment community will be paying close attention to the earnings performance of Delta Air Lines in its upcoming release. On that day, Delta Air Lines is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $12.95 billion, up 1.47% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.59 per share and a revenue of $57.91 billion, indicating changes of +5.44% and -0.25%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Delta Air Lines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.62% downward. Currently, Delta Air Lines is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Delta Air Lines is at present trading with a Forward P/E ratio of 6.4. This denotes a discount relative to the industry's average Forward P/E of 8.38.
One should further note that DAL currently holds a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.53.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.