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Delta Air Lines (DAL) Outpaces Stock Market Gains: What You Should Know

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Delta Air Lines (DAL - Free Report) closed the most recent trading day at $51.10, moving +1.23% from the previous trading session. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.75%, and the tech-heavy Nasdaq gained 0.61%.

Prior to today's trading, shares of the airline had gained 4.69% over the past month. This has lagged the Transportation sector's gain of 8.23% and the S&P 500's gain of 6.53% in that time.

Wall Street will be looking for positivity from DAL as it approaches its next earnings report date. The company is expected to report EPS of $0.83, up 12.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.35 billion, up 3.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $46.28 billion, which would represent changes of +15.75% and +4.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DAL. 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 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% higher. 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 7.72. This represents a discount compared to its industry's average Forward P/E of 9.87.

It is also worth noting that DAL currently has a PEG ratio of 0.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DAL's industry had an average PEG ratio of 0.73 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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.

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