Danaos (DAC) Gains But Lags Market: What You Should Know
In the latest trading session, Danaos (DAC) closed at $75.25, marking a +0.6% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day.
Coming into today, shares of the shipping company had gained 19.68% in the past month. In that same time, the Transportation sector lost 4.85%, while the S&P 500 gained 2.91%.
Investors will be hoping for strength from DAC as it approaches its next earnings release. 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 $141.96 million, up 21.52% from the year-ago period.
DAC's full-year Zacks Consensus Estimates are calling for earnings of $13.48 per share and revenue of $574.36 million. These results would represent year-over-year changes of +87.74% and +24.43%, respectively.
Investors might also notice recent changes to analyst estimates for DAC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.6% lower within the past month. DAC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DAC has a Forward P/E ratio of 5.55 right now. Its industry sports an average Forward P/E of 5.78, so we one might conclude that DAC is trading at a discount comparatively.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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