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Delta Air Lines (DAL) Exceeds Market Returns: Some Facts to Consider

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Delta Air Lines (DAL - Free Report) closed the latest trading day at $52.70, indicating a +0.36% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.12%. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

Shares of the airline have appreciated by 9.74% over the course of the past month, outperforming the Transportation sector's gain of 2.42% and the S&P 500's gain of 4.99%.

The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. The company is predicted to post an EPS of $2.40, indicating a 10.45% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $16.31 billion, indicating a 4.68% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.66 per share and a revenue of $61.19 billion, indicating changes of +6.56% and +5.41%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Delta Air Lines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 2.06% higher within the past month. Right now, Delta Air Lines possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Delta Air Lines currently has a Forward P/E ratio of 7.89. This indicates a discount in contrast to its industry's Forward P/E of 9.28.

One should further note that DAL currently holds a PEG ratio of 0.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DAL's industry had an average PEG ratio of 0.71 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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