In the latest trading session, Delta Air Lines (DAL) closed at $40.15, down -0.07% from the previous day. The stock lagged the S&P 500, which posted a daily gain of 0.2%. The Dow gained 0.24%, while the tech-heavy Nasdaq gained 0.21%.
The airline’s shares fell 10.55 percent month-on-month, outperforming the transportation sector’s 19.48 percent loss and lagging the S&P 500’s 1.49 percent loss.
Delta Air Lines’ upcoming earnings release will be of great interest to investors. The company is expected to report earnings per share of $1.55, down 23.65% from the corresponding quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.58 billion, up 0.6% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.99 per share and revenue of $59.63 billion, which represent changes of -4.16% and +2.73%, respectively, from the prior year.
Investors should also pay attention to any recent changes in analyst estimates for Delta Air Lines. These changes demonstrate that near-term business trends are constantly changing. Consequently, upward revisions to estimates express analysts’ positive view of the company’s business and its ability to generate earnings.
Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To capitalize on this, we have developed the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable outside-audited track record of success. #1 stocks have delivered an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has declined 4.68%. Delta Air Lines currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Delta Air Lines is currently trading at a P/E ratio of 6.7, which represents a discount to the industry’s average P/E ratio of 9.16.
It is also worth noting that DAL currently has a PEG ratio of 0.88. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Transportation & Aviation industry was 0.88 at market close yesterday.
The Transportation – Aviation industry is part of the Transportation sector. The current Zacks Industry Rank of 223 puts this industry in the bottom 12% of all industries which include 250+ industries.
The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all of these and other stock-influencing metrics during the upcoming trading sessions.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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