Danaos (DAC) Gains As Market Dips: What You Should Know
Danaos (DAC) closed at $81.87 in the latest trading session, marking a +0.83% move from the prior day. This change outpaced the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the shipping company had gained 16% over the past month. This has outpaced the Transportation sector's gain of 0.08% and the S&P 500's loss of 1.81% in that time.
Wall Street will be looking for positivity from Danaos as it approaches its next earnings report date. On that day, Danaos is projected to report earnings of $4.75 per share, which would represent year-over-year growth of 107.42%. Meanwhile, our latest consensus estimate is calling for revenue of $188.87 million, up 57.86% from the prior-year quarter.
Any recent changes to analyst estimates for Danaos should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Danaos currently has a Zacks Rank of #3 (Hold).
Investors should also note Danaos's current valuation metrics, including its Forward P/E ratio of 3.78. This represents a no noticeable deviation compared to its industry's average Forward P/E of 3.78.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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