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Delta Air Lines (DAL) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Delta Air Lines (DAL - Free Report) closed at $62.00, marking a +1.2% move from the previous day. This move outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.53%.

Shares of the airline witnessed a gain of 14.29% over the previous month, beating the performance of the Transportation sector with its loss of 1.57%, and the S&P 500's gain of 1.52%.

Investors will be eagerly watching for the performance of Delta Air Lines in its upcoming earnings disclosure. On that day, Delta Air Lines is projected to report earnings of $1.48 per share, which would represent a year-over-year decline of 1.33%. Simultaneously, our latest consensus estimate expects the revenue to be $15.77 billion, showing a 0.59% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.63 per share and a revenue of $61.84 billion, demonstrating changes of -8.6% and +0.32%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.68% decrease. As of now, Delta Air Lines holds a Zacks Rank of #3 (Hold).

With respect to valuation, Delta Air Lines is currently being traded at a Forward P/E ratio of 10.88. For comparison, its industry has an average Forward P/E of 10.6, which means Delta Air Lines is trading at a premium to the group.

We can also see that DAL currently has a PEG ratio of 1.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.86.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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