We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Delta Air Lines (DAL) Right Now?
Read MoreHide Full Article
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8, which compares to its industry's average of 9.93. Over the past 52 weeks, DAL's Forward P/E has been as high as 8.79 and as low as 7.23, with a median of 8.06.
We also note that DAL holds a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DAL's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, DAL's PEG has been as high as 0.78 and as low as 0.43, with a median of 0.60.
Another notable valuation metric for DAL is its P/B ratio of 2.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.63. DAL's P/B has been as high as 2.96 and as low as 2.27, with a median of 2.60, over the past year.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAL's current P/CF looks attractive when compared to its industry's average P/CF of 5.88. Over the past 52 weeks, DAL's P/CF has been as high as 6.05 and as low as 4.88, with a median of 5.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Delta Air Lines (DAL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8, which compares to its industry's average of 9.93. Over the past 52 weeks, DAL's Forward P/E has been as high as 8.79 and as low as 7.23, with a median of 8.06.
We also note that DAL holds a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DAL's PEG compares to its industry's average PEG of 0.70. Over the past 52 weeks, DAL's PEG has been as high as 0.78 and as low as 0.43, with a median of 0.60.
Another notable valuation metric for DAL is its P/B ratio of 2.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.63. DAL's P/B has been as high as 2.96 and as low as 2.27, with a median of 2.60, over the past year.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAL's current P/CF looks attractive when compared to its industry's average P/CF of 5.88. Over the past 52 weeks, DAL's P/CF has been as high as 6.05 and as low as 4.88, with a median of 5.52.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Delta Air Lines is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAL feels like a great value stock at the moment.