Is Delta Air Lines (DAL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Delta Air Lines (DAL) is a stock many investors are watching right now. DAL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.75, which compares to its industry's average of 9.36. DAL's Forward P/E has been as high as 9.85 and as low as 7.16, with a median of 8.48, all within the past year.
We should also highlight that DAL has a P/B ratio of 2.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.99. Within the past 52 weeks, DAL's P/B has been as high as 3.21 and as low as 2.28, with a median of 2.79.
Finally, investors will want to recognize that DAL has a P/CF ratio of 6.03. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. DAL's current P/CF looks attractive when compared to its industry's average P/CF of 6.65. DAL's P/CF has been as high as 7.48 and as low as 5, with a median of 6, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Delta Air Lines is likely undervalued currently. And when considering the strength of its earnings outlook, DAL sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
