Back to top

Image: Bigstock

Delta Air Lines (DAL) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Delta Air Lines (DAL - Free Report) closed the most recent trading day at $59.14, moving -0.55% from the previous trading session. This change lagged the S&P 500's 0.16% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.

Prior to today's trading, shares of the airline had lost 3.49% over the past month. This has lagged the Transportation sector's gain of 0.42% and the S&P 500's gain of 3.63% 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 $1.06 per share, which would represent year-over-year growth of 10.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.11 billion, up 6.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $49.30 billion. These totals would mark changes of 0% and +4.87%, respectively, from last year.

Any recent changes to analyst estimates for DAL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 1.66% higher within the past month. DAL is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, DAL is holding a Forward P/E ratio of 8.14. This valuation marks a discount compared to its industry's average Forward P/E of 8.94.

Also, we should mention that DAL has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.58 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.

To follow DAL in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Delta Air Lines, Inc. (DAL) - free report >>

Published in