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Danaos (DAC) Gains As Market Dips: What You Should Know

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Danaos (DAC - Free Report) closed at $88.77 in the latest trading session, marking a +0.38% move from the prior day. This change outpaced the S&P 500's 1.21% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.49%.

Coming into today, shares of the shipping company had lost 16.44% in the past month. In that same time, the Transportation sector lost 1.94%, while the S&P 500 gained 5.85%.

Wall Street will be looking for positivity from Danaos as it approaches its next earnings report date. The company is expected to report EPS of $9.48, up 234.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $212.86 million, up 61.11% from the prior-year quarter.

DAC's full-year Zacks Consensus Estimates are calling for earnings of $30.17 per share and revenue of $911.98 million. These results would represent year-over-year changes of +71.42% and +32.27%, respectively.

Any recent changes to analyst estimates for Danaos should also be noted by investors. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Danaos is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Danaos is currently trading at a Forward P/E ratio of 2.93. This valuation marks a discount compared to its industry's average Forward P/E of 4.22.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

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.

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


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