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Delta Air Lines (DAL) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Delta Air Lines (DAL - Free Report) closed at $42.19, marking a +1.52% move from the previous day. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the airline had gained 22.89% over the past month, outpacing the Transportation sector's gain of 2.95% and the S&P 500's gain of 6.1% in that time.

Wall Street will be looking for positivity from Delta Air Lines as it approaches its next earnings report date. This is expected to be July 13, 2023. On that day, Delta Air Lines is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 42.36%. Our most recent consensus estimate is calling for quarterly revenue of $14.91 billion, up 7.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.41 per share and revenue of $55.43 billion. These totals would mark changes of +69.06% and +9.58%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Delta Air Lines. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Delta Air Lines is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Delta Air Lines is holding a Forward P/E ratio of 7.68. For comparison, its industry has an average Forward P/E of 11.32, which means Delta Air Lines is trading at a discount to the group.

It is also worth noting that DAL currently has a PEG ratio of 0.22. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.33 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

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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