In the latest market close, Delta Air Lines (DAL – Free Report) reached $48.07, with a -1.23% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.12%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 2.04%.
Shares of the airline witnessed a loss of 21.23% over the previous month, trailing the performance of the Transportation sector with its loss of 3.72% and the S&P 500’s loss of 2.91%.
The investment community will be paying close attention to the earnings performance of Delta Air Lines in its upcoming release. The company is expected to report EPS of $0.40, down 11.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.93 billion, up 1.33% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.99 per share and a revenue of $63.27 billion, indicating changes of +13.47% and +2.64%, respectively, from the former year.
Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 7.33% lower. 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 6.97. For comparison, its industry has an average Forward P/E of 8.44, 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 0.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Transportation – Airline industry currently had an average PEG ratio of 0.66 as of yesterday’s close.
The Transportation – Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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