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Are Investors Undervaluing Delta Air Lines (DAL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.42, while its industry has an average P/E of 13.27. DAL's Forward P/E has been as high as 17.82 and as low as 6.03, with a median of 7.46, all within the past year.
Investors should also recognize that DAL has a P/B ratio of 3.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DAL's current P/B looks attractive when compared to its industry's average P/B of 4.85. Over the past 12 months, DAL's P/B has been as high as 9.59 and as low as 3.24, with a median of 5.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAL has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that DAL has a P/CF ratio of 13.08. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAL's P/CF compares to its industry's average P/CF of 24.50. DAL's P/CF has been as high as 13.56 and as low as 6.92, with a median of 10.03, all within the past year.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines also has a P/B ratio of 3.45 compared to its industry's price-to-book ratio of 4.85. Over the past year, its P/B ratio has been as high as 4.68, as low as 2.01, with a median of 3.
These are only a few of the key metrics included in Delta Air Lines and United Airlines strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAL and UAL look like an impressive value stock at the moment.
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Are Investors Undervaluing Delta Air Lines (DAL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Delta Air Lines (DAL - Free Report) is a stock many investors are watching right now. DAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.42, while its industry has an average P/E of 13.27. DAL's Forward P/E has been as high as 17.82 and as low as 6.03, with a median of 7.46, all within the past year.
Investors should also recognize that DAL has a P/B ratio of 3.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. DAL's current P/B looks attractive when compared to its industry's average P/B of 4.85. Over the past 12 months, DAL's P/B has been as high as 9.59 and as low as 3.24, with a median of 5.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAL has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.55.
Finally, our model also underscores that DAL has a P/CF ratio of 13.08. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAL's P/CF compares to its industry's average P/CF of 24.50. DAL's P/CF has been as high as 13.56 and as low as 6.92, with a median of 10.03, all within the past year.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines also has a P/B ratio of 3.45 compared to its industry's price-to-book ratio of 4.85. Over the past year, its P/B ratio has been as high as 4.68, as low as 2.01, with a median of 3.
These are only a few of the key metrics included in Delta Air Lines and United Airlines strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAL and UAL look like an impressive value stock at the moment.