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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 10.78. Over the past 52 weeks, DAL's Forward P/E has been as high as 9.94 and as low as 5.04, with a median of 8.52.
Another valuation metric that we should highlight is DAL's P/B ratio of 2.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. Over the past 12 months, DAL's P/B has been as high as 3.11 and as low as 1.52, with a median of 2.29.
Finally, investors should note that DAL has a P/CF ratio of 5.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.58. Over the past 52 weeks, DAL's P/CF has been as high as 7.54 and as low as 3.79, with a median of 5.32.
United Airlines (UAL - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. UAL is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
United Airlines is trading at a forward earnings multiple of 8.98 at the moment, with a PEG ratio of 1.19. This compares to its industry's average P/E of 10.78 and average PEG ratio of 0.48.
UAL's price-to-earnings ratio has been as high as 9.45 and as low as 4.45, with a median of 7.52, while its PEG ratio has been as high as 1.40 and as low as 0.37, with a median of 1.00, all within the past year.
Additionally, United Airlines has a P/B ratio of 2.57 while its industry's price-to-book ratio sits at 3.07. For UAL, this valuation metric has been as high as 2.95, as low as 1.45, with a median of 2.19 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines and United Airlines are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL and UAL feels like a great value stock at the moment.
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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 10.78. Over the past 52 weeks, DAL's Forward P/E has been as high as 9.94 and as low as 5.04, with a median of 8.52.
Another valuation metric that we should highlight is DAL's P/B ratio of 2.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.07. Over the past 12 months, DAL's P/B has been as high as 3.11 and as low as 1.52, with a median of 2.29.
Finally, investors should note that DAL has a P/CF ratio of 5.57. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.58. Over the past 52 weeks, DAL's P/CF has been as high as 7.54 and as low as 3.79, with a median of 5.32.
United Airlines (UAL - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. UAL is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
United Airlines is trading at a forward earnings multiple of 8.98 at the moment, with a PEG ratio of 1.19. This compares to its industry's average P/E of 10.78 and average PEG ratio of 0.48.
UAL's price-to-earnings ratio has been as high as 9.45 and as low as 4.45, with a median of 7.52, while its PEG ratio has been as high as 1.40 and as low as 0.37, with a median of 1.00, all within the past year.
Additionally, United Airlines has a P/B ratio of 2.57 while its industry's price-to-book ratio sits at 3.07. For UAL, this valuation metric has been as high as 2.95, as low as 1.45, with a median of 2.19 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines and United Airlines are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL and UAL feels like a great value stock at the moment.