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Delta Air Lines (DAL) Gains As Market Dips: What You Should Know

·3 min read

Delta Air Lines (DAL) closed at $31.19 in the latest trading session, marking a +0.81% move from the prior day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.

Heading into today, shares of the airline had lost 8.33% over the past month, lagging the Transportation sector's loss of 4.48% and the S&P 500's loss of 5.13% in that time.

Delta Air Lines will be looking to display strength as it nears its next earnings release. In that report, analysts expect Delta Air Lines to post earnings of $1.59 per share. This would mark year-over-year growth of 430%. Meanwhile, our latest consensus estimate is calling for revenue of $14.05 billion, up 53.5% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $49.1 billion. These totals would mark changes of +168.63% and +64.21%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. Delta Air Lines is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Delta Air Lines has a Forward P/E ratio of 11.07 right now. Its industry sports an average Forward P/E of 13.29, so we one might conclude that Delta Air Lines is trading at a discount comparatively.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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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