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Danaos (DAC) Gains As Market Dips: What You Should Know

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Danaos (DAC - Free Report) closed at $0.86 in the latest trading session, marking a +0.61% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.57%.

Heading into today, shares of the shipping company had lost 1.76% over the past month, lagging the Transportation sector's gain of 2.48% and the S&P 500's gain of 4% in that time.

Investors will be hoping for strength from DAC as it approaches its next earnings release. In that report, analysts expect DAC to post earnings of $0.16 per share. This would mark a year-over-year decline of 36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.03 million, down 3.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.57 per share and revenue of $416.64 million, which would represent changes of -35.23% and -9.18%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DAC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. DAC is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, DAC currently has a Forward P/E ratio of 1.49. This valuation marks a discount compared to its industry's average Forward P/E of 16.65.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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