Delta Air Lines (DAL) ended the recent trading session at $63.24, demonstrating a -1.3% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.6%.
Shares of the airline witnessed a gain of 14.82% over the previous month, beating the performance of the Transportation sector with its gain of 0.96% and the S&P 500's gain of 1.06%.
The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. In that report, analysts expect Delta Air Lines to post earnings of $1.75 per share. This would mark year-over-year growth of 36.72%. At the same time, our most recent consensus estimate is projecting a revenue of $14.91 billion, reflecting a 4.84% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $60.17 billion. These totals would mark changes of -2.88% and +3.65%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.87% decrease. Currently, Delta Air Lines is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Delta Air Lines currently has a Forward P/E ratio of 10.56. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 10.56.
We can also see that DAL currently has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 1.14.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
