In the latest trading session, Danaos (DAC) closed at $70.73, marking a -1.26% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%.
Coming into today, shares of the shipping company had gained 19.4% in the past month. In that same time, the Transportation sector lost 2.7%, while the S&P 500 gained 2.11%.
Wall Street will be looking for positivity from DAC as it approaches its next earnings report date. The company is expected to report EPS of $3.39, up 98.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $146.3 million, up 25.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.84 per share and revenue of $586.12 million, which would represent changes of +92.76% and +26.98%, respectively, from the prior year.
Any recent changes to analyst estimates for DAC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DAC is currently a Zacks Rank #3 (Hold).
Investors should also note DAC's current valuation metrics, including its Forward P/E ratio of 5.18. Its industry sports an average Forward P/E of 6.23, so we one might conclude that DAC is trading at a discount comparatively.
The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow DAC in the coming trading sessions, be sure to utilize Zacks.com.
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