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Danaos (DAC) Gains As Market Dips: What You Should Know

Zacks Equity Research

Danaos (DAC) closed the most recent trading day at $10.35, moving +1.47% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.26%.

Coming into today, shares of the shipping company had lost 26.44% in the past month. In that same time, the Transportation sector lost 1.45%, while the S&P 500 lost 0.19%.

Investors will be hoping for strength from DAC as it approaches its next earnings release, which is expected to be May 13, 2019. On that day, DAC is projected to report earnings of $2.24 per share, which would represent a year-over-year decline of 36.36%. Meanwhile, our latest consensus estimate is calling for revenue of $108.03 million, down 3.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.98 per share and revenue of $416.64 million. These totals would mark changes of -35.59% and -9.18%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DAC. Recent revisions tend to reflect the latest near-term business trends. 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.

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 remained stagnant within the past month. DAC is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, DAC is currently trading at a Forward P/E ratio of 1.28. For comparison, its industry has an average Forward P/E of 15.07, which means DAC is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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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