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Delta Air Lines (DAL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Delta Air Lines (DAL) closed at $55.62 in the latest trading session, marking a -1.99% move from the prior day. This change lagged the S&P 500's 0.66% loss on the day. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.55%.

Coming into today, shares of the airline had lost 0.23% in the past month. In that same time, the Transportation sector lost 0.42%, while the S&P 500 gained 1.77%.

Investors will be hoping for strength from DAL as it approaches its next earnings release. The company is expected to report EPS of $1.39, up 6.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.34 billion, up 5.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.01 per share and revenue of $46.90 billion. These totals would mark changes of +24.07% and +5.54%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for DAL. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. DAL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, DAL is holding a Forward P/E ratio of 8.09. For comparison, its industry has an average Forward P/E of 9.14, which means DAL is trading at a discount to the group.

We can also see that DAL currently has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.64 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
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