Danaos (DAC) Gains But Lags Market: What You Should Know
Danaos (DAC) closed at $82.08 in the latest trading session, marking a +0.17% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the shipping company had gained 3.11% in the past month. In that same time, the Transportation sector gained 0.94%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from Danaos as it approaches its next earnings release. On that day, Danaos is projected to report earnings of $6.89 per share, which would represent year-over-year growth of 106.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $220.85 million, up 50.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $32.50 per share and revenue of $915.16 million, which would represent changes of +84.66% and +32.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Danaos. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 7.72% higher within the past month. Danaos is currently a Zacks Rank #2 (Buy).
In terms of valuation, Danaos is currently trading at a Forward P/E ratio of 2.52. This valuation marks a discount compared to its industry's average Forward P/E of 4.38.
The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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