Delta Air Lines (DAL) ended the recent trading session at $89.20, demonstrating a -2.31% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.28%.
Shares of the airline have appreciated by 5.32% over the course of the past month, outperforming the Transportation sector's gain of 0.18%, and the S&P 500's gain of 3.84%.
The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. On that day, Delta Air Lines is projected to report earnings of $2.19 per share, which would represent year-over-year growth of 28.07%. At the same time, our most recent consensus estimate is projecting a revenue of $17.68 billion, reflecting a 6.02% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $66.56 billion, which would represent changes of +12.37% and +5.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Delta Air Lines. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.92% decrease. Right now, Delta Air Lines possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Delta Air Lines is currently exchanging hands at a Forward P/E ratio of 13.97. Its industry sports an average Forward P/E of 11.58, so one might conclude that Delta Air Lines is trading at a premium comparatively.
We can also see that DAL currently has a PEG ratio of 1.15. 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 0.82 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 162, finds itself in the bottom 35% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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