The latest trading session saw Delta Air Lines (DAL) ending at $61.05, denoting a -0.76% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 1.24%.
Heading into today, shares of the airline had lost 3.98% over the past month, outpacing the Transportation sector's loss of 4.05% and lagging the S&P 500's gain of 1.17% in that time.
The investment community will be paying close attention to the earnings performance of Delta Air Lines in its upcoming release. The company is expected to report EPS of $1.77, up 38.28% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $14.81 billion, reflecting a 4.13% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.08 per share and a revenue of $60.31 billion, signifying shifts of -2.72% and +3.89%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. As of now, Delta Air Lines holds a Zacks Rank of #3 (Hold).
In the context of valuation, Delta Air Lines is at present trading with a Forward P/E ratio of 10.11. Its industry sports an average Forward P/E of 10.25, so one might conclude that Delta Air Lines is trading at a discount comparatively.
Meanwhile, DAL's PEG ratio is currently 1.17. 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 average PEG ratio for the Transportation - Airline industry stood at 1.15 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
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