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Should Value Investors Buy Delta Air Lines (DAL) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.86, which compares to its industry's average of 8.18. DAL's Forward P/E has been as high as 9.85 and as low as 7.16, with a median of 8.38, all within the past year.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.70. Over the past year, DAL's P/CF has been as high as 7.86 and as low as 4.97, with a median of 5.90.
These are only a few of the key metrics included in Delta Air Lines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DAL looks like an impressive value stock at the moment.
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Should Value Investors Buy Delta Air Lines (DAL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 7.86, which compares to its industry's average of 8.18. DAL's Forward P/E has been as high as 9.85 and as low as 7.16, with a median of 8.38, all within the past year.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.70. Over the past year, DAL's P/CF has been as high as 7.86 and as low as 4.97, with a median of 5.90.
These are only a few of the key metrics included in Delta Air Lines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DAL looks like an impressive value stock at the moment.