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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.65, which compares to its industry's average of 8.55. Over the past year, DAL's Forward P/E has been as high as 12.67 and as low as 5.65, with a median of 7.17.
We also note that DAL holds a PEG ratio of 0.16. 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 PEG compares to its industry's average PEG of 0.27. Within the past year, DAL's PEG has been as high as 0.21 and as low as 0.16, with a median of 0.20.
Another valuation metric that we should highlight is DAL's P/B ratio of 3.40. The P/B is a method of comparing a stock's market value to 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 3.68. Within the past 52 weeks, DAL's P/B has been as high as 9.50 and as low as 3.08, with a median of 4.79.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DAL's current P/CF looks attractive when compared to its industry's average P/CF of 10.58. Within the past 12 months, DAL's P/CF has been as high as 11.23 and as low as 5.29, with a median of 7.96.
United Airlines (UAL - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. UAL is a # 2 (Buy) stock with a Value grade of A.
United Airlines is trading at a forward earnings multiple of 4.57 at the moment, with a PEG ratio of 0.10. This compares to its industry's average P/E of 8.55 and average PEG ratio of 0.27.
UAL's price-to-earnings ratio has been as high as 108.97 and as low as 4.57, with a median of 7.80, while its PEG ratio has been as high as 0.11 and as low as 0.10, with a median of 0.11, all within the past year.
United Airlines also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 3.68. Over the past year, its P/B ratio has been as high as 4.68, as low as 1.76, with a median of 2.87.
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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Is Delta Air Lines (DAL) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Delta Air Lines (DAL - Free Report) . DAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.65, which compares to its industry's average of 8.55. Over the past year, DAL's Forward P/E has been as high as 12.67 and as low as 5.65, with a median of 7.17.
We also note that DAL holds a PEG ratio of 0.16. 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 PEG compares to its industry's average PEG of 0.27. Within the past year, DAL's PEG has been as high as 0.21 and as low as 0.16, with a median of 0.20.
Another valuation metric that we should highlight is DAL's P/B ratio of 3.40. The P/B is a method of comparing a stock's market value to 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 3.68. Within the past 52 weeks, DAL's P/B has been as high as 9.50 and as low as 3.08, with a median of 4.79.
Finally, investors will want to recognize that DAL has a P/CF ratio of 5.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DAL's current P/CF looks attractive when compared to its industry's average P/CF of 10.58. Within the past 12 months, DAL's P/CF has been as high as 11.23 and as low as 5.29, with a median of 7.96.
United Airlines (UAL - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. UAL is a # 2 (Buy) stock with a Value grade of A.
United Airlines is trading at a forward earnings multiple of 4.57 at the moment, with a PEG ratio of 0.10. This compares to its industry's average P/E of 8.55 and average PEG ratio of 0.27.
UAL's price-to-earnings ratio has been as high as 108.97 and as low as 4.57, with a median of 7.80, while its PEG ratio has been as high as 0.11 and as low as 0.10, with a median of 0.11, all within the past year.
United Airlines also has a P/B ratio of 2.09 compared to its industry's price-to-book ratio of 3.68. Over the past year, its P/B ratio has been as high as 4.68, as low as 1.76, with a median of 2.87.
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.