Delta Air Lines (DAL - Free Report) closed at $58.19 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 1.41%, and the Nasdaq, a tech-heavy index, added 1.75%.
Prior to today's trading, shares of the airline had lost 3.39% over the past month. This has lagged the Transportation sector's loss of 2.69% and the S&P 500's gain of 0.46% in that time.
DAL will be looking to display strength as it nears its next earnings release. On that day, DAL is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 25.56%. Meanwhile, our latest consensus estimate is calling for revenue of $12.62 billion, up 5.59% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.07 per share and revenue of $46.82 billion, which would represent changes of +25.13% and +5.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DAL. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DAL is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DAL currently has a Forward P/E ratio of 8.09. This valuation marks a discount compared to its industry's average Forward P/E of 9.
We can also see that DAL currently has a PEG ratio of 0.45. 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 0.4 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 48, which puts it in the top 19% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.