Back to top

Image: Bigstock

Delta Air Lines (DAL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Delta Air Lines (DAL) closed the most recent trading day at $45.89, moving +1.96% from the previous trading session. This change outpaced the S&P 500's 1.71% loss on the day. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.87%.

Prior to today's trading, shares of the airline had lost 22.64% over the past month. This has lagged the Transportation sector's loss of 16.62% and the S&P 500's loss of 9.13% in that time.

Wall Street will be looking for positivity from DAL as it approaches its next earnings report date. In that report, analysts expect DAL to post earnings of $1.05 per share. This would mark year-over-year growth of 9.38%. Our most recent consensus estimate is calling for quarterly revenue of $11.10 billion, up 5.95% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $49.28 billion. These totals would mark changes of +0.55% and +4.84%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for DAL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. DAL is currently a Zacks Rank #2 (Buy).

Digging into valuation, DAL currently has a Forward P/E ratio of 6.13. Its industry sports an average Forward P/E of 6.09, so we one might conclude that DAL is trading at a premium comparatively.

We can also see that DAL currently has a PEG ratio of 0.44. 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. DAL's industry had an average PEG ratio of 0.44 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Published in