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

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Delta Air Lines (DAL - Free Report) closed at $65.14 in the latest trading session, marking a +1.54% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.39%, and the technology-dominated Nasdaq saw an increase of 0.59%.

Shares of the airline witnessed a gain of 9.66% over the previous month, beating the performance of the Transportation sector with its gain of 2.83%, and the S&P 500's loss of 0.23%.

Analysts and investors alike will be keeping a close eye on the performance of Delta Air Lines in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.75, signifying a 5.41% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $15.84 billion, up 1.78% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.02 per share and revenue of $63.05 billion. These totals would mark changes of -2.27% and +2.28%, respectively, from last year.

Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained steady. As of now, Delta Air Lines holds 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 10.65. This expresses no noticeable deviation compared to the average Forward P/E of 10.65 of its industry.

Investors should also note that DAL has a PEG ratio of 1.47 right now. 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 0.73 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 39% 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.

To follow DAL in the coming trading sessions, be sure to utilize Zacks.com.


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