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

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In the latest market close, Delta Air Lines (DAL - Free Report) reached $62.77, with a +0.82% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.25%.

Heading into today, shares of the airline had lost 2.05% over the past month, outpacing the Transportation sector's loss of 2.82% and lagging the S&P 500's gain of 1.09% 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 $1.77 per share, which would represent year-over-year growth of 38.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.78 billion, up 3.94% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.08 per share and a revenue of $60.28 billion, signifying shifts of -2.72% and +3.85%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Delta Air Lines. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.2% rise in the Zacks Consensus EPS estimate. Delta Air Lines presently features a Zacks Rank of #3 (Hold).

Investors should also note Delta Air Lines's current valuation metrics, including its Forward P/E ratio of 10.24. This signifies a discount in comparison to the average Forward P/E of 10.78 for its industry.

We can additionally observe that DAL currently boasts a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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