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Delta Air Lines (DAL) Rises Higher Than Market: Key Facts

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In the latest close session, Delta Air Lines (DAL - Free Report) was up +1.17% at $61.39. The stock outperformed the S&P 500, which registered a daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the airline had gained 3.83% in the past month. In that same time, the Transportation sector gained 1.13%, while the S&P 500 gained 2.09%.

Investors will be eagerly watching for the performance of Delta Air Lines in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.48, showcasing a 1.33% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $15.77 billion, up 0.59% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.63 per share and revenue of $61.84 billion, indicating changes of -8.6% and +0.32%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Delta Air Lines. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Delta Air Lines currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Delta Air Lines currently has a Forward P/E ratio of 10.78. This represents a premium compared to its industry average Forward P/E of 10.52.

Meanwhile, DAL's PEG ratio is currently 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.82 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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