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Delta Air Lines (DAL) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Delta Air Lines (DAL) closed at $58.04, marking a +1.63% move from the previous day. This move outpaced the S&P 500's daily gain of 1.44%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq gained 1.67%.

Coming into today, shares of the airline had lost 8.86% in the past month. In that same time, the Transportation sector lost 7.09%, while the S&P 500 lost 5.33%.

Wall Street will be looking for positivity from DAL as it approaches its next earnings report date. On that day, DAL is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 25.56%. Meanwhile, our latest consensus estimate is calling for revenue of $12.61 billion, up 5.53% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.05 per share and revenue of $46.82 billion, which would represent changes of +24.78% and +5.36%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DAL. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.78% higher. DAL is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, DAL currently has a Forward P/E ratio of 8.1. For comparison, its industry has an average Forward P/E of 8.89, which means DAL is trading at a discount to the group.

Also, we should mention that DAL has a PEG ratio of 0.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.46 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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