Delta Air Lines (DAL) Rises Higher Than Market: Key Facts

In the latest trading session, Delta Air Lines (DAL) closed at $78.14, marking a +2.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.45%.

Shares of the airline have depreciated by 17.67% over the course of the past month, underperforming the Transportation sector's loss of 0.86%, and the S&P 500's gain of 2%.

The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company is expected to report EPS of $2.03, up 18.71% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $17.67 billion, indicating a 6% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.23 per share and a revenue of $66.58 billion, representing changes of +7.04% and +5.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.7% decrease. Delta Air Lines presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Delta Air Lines is currently being traded at a Forward P/E ratio of 12.26. This signifies a premium in comparison to the average Forward P/E of 10.78 for its industry.

It's also important to note that DAL currently trades at a PEG ratio of 1.05. 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. The Transportation - Airline was holding an average PEG ratio of 0.71 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 204, positioning it in the bottom 18% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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