Delta Air Lines (DAL - Free Report) closed the most recent trading day at $55.97, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today's trading, shares of the airline had gained 3.67% over the past month. This has outpaced the Transportation sector's loss of 2.53% and the S&P 500's loss of 4.37% in that time.
Investors will be hoping for strength from DAL as it approaches its next earnings release, which is expected to be January 10, 2019. In that report, analysts expect DAL to post earnings of $1.22 per share. This would mark year-over-year growth of 27.08%. Meanwhile, our latest consensus estimate is calling for revenue of $10.89 billion, up 6.3% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.52 per share and revenue of $44.52 billion. These totals would mark changes of +11.97% and +7.94%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DAL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. DAL is currently a Zacks Rank #3 (Hold).
Investors should also note DAL's current valuation metrics, including its Forward P/E ratio of 10.05. For comparison, its industry has an average Forward P/E of 12.4, which means DAL is trading at a discount to the group.
It is also worth noting that DAL currently has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 94, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow DAL in the coming trading sessions, be sure to utilize Zacks.com.