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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 $59.44, marking a +0.8% move from the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.

Prior to today's trading, shares of the airline had gained 6.62% over the past month. This has outpaced the Transportation sector's gain of 2.82% and the S&P 500's gain of 3.81% in that time.

Investors will be hoping for strength from DAL as it approaches its next earnings release. On that day, DAL is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 6.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.34 billion, up 5.59% from the year-ago period.

DAL's full-year Zacks Consensus Estimates are calling for earnings of $7.01 per share and revenue of $46.90 billion. These results would represent year-over-year changes of +24.07% and +5.55%, respectively.

It is also important to note the recent changes to analyst estimates for DAL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. DAL is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, DAL currently has a Forward P/E ratio of 8.41. This valuation marks a discount compared to its industry's average Forward P/E of 10.06.

Investors should also note that DAL has a PEG ratio of 0.7 right now. 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. The Transportation - Airline was holding an average PEG ratio of 0.7 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.

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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