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Why Delta Air Lines (DAL) Outpaced the Stock Market Today
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The latest trading session saw Delta Air Lines (DAL - Free Report) ending at $43.44, denoting a +0.74% adjustment from its last day's close. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.
Prior to today's trading, shares of the airline had gained 7.48% over the past month. This has outpaced the Transportation sector's gain of 0.44% and the S&P 500's gain of 1.76% in that time.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 36% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.88 billion, indicating a 0.92% upward movement from the same quarter last year.
DAL's full-year Zacks Consensus Estimates are calling for earnings of $6.57 per share and revenue of $57.86 billion. These results would represent year-over-year changes of +5.12% and -0.33%, respectively.
It is also important to note the recent changes to analyst estimates for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Delta Air Lines is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Delta Air Lines is currently trading at a Forward P/E ratio of 6.56. For comparison, its industry has an average Forward P/E of 8.49, which means Delta Air Lines is trading at a discount to the group.
It's also important to note that DAL currently trades at a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why Delta Air Lines (DAL) Outpaced the Stock Market Today
The latest trading session saw Delta Air Lines (DAL - Free Report) ending at $43.44, denoting a +0.74% adjustment from its last day's close. This change outpaced the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.82%.
Prior to today's trading, shares of the airline had gained 7.48% over the past month. This has outpaced the Transportation sector's gain of 0.44% and the S&P 500's gain of 1.76% in that time.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 36% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.88 billion, indicating a 0.92% upward movement from the same quarter last year.
DAL's full-year Zacks Consensus Estimates are calling for earnings of $6.57 per share and revenue of $57.86 billion. These results would represent year-over-year changes of +5.12% and -0.33%, respectively.
It is also important to note the recent changes to analyst estimates for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Delta Air Lines is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Delta Air Lines is currently trading at a Forward P/E ratio of 6.56. For comparison, its industry has an average Forward P/E of 8.49, which means Delta Air Lines is trading at a discount to the group.
It's also important to note that DAL currently trades at a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.