In the latest trading session, Delta Air Lines (DAL - Free Report) closed at $58.87, marking a +0.96% move from the previous day. This change lagged the S&P 500's 2.3% gain on the day. At the same time, the Dow added 2.5%, and the tech-heavy Nasdaq gained 2.95%.
Prior to today's trading, shares of the airline had gained 5.79% over the past month. This has outpaced the Transportation sector's gain of 4.59% and the S&P 500's gain of 1.21% in that time.
DAL will be looking to display strength as it nears its next earnings release, which is expected to be January 10, 2019. The company is expected to report EPS of $1.22, up 27.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.89 billion, up 6.3% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for DAL. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. DAL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note DAL's current valuation metrics, including its Forward P/E ratio of 10.57. This represents a discount compared to its industry's average Forward P/E of 13.03.
It is also worth noting that DAL currently has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.69 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.