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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 $58.69, marking a +0.46% move from the previous day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the airline had gained 2.35% over the past month. This has outpaced the Transportation sector's gain of 0.76% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from DAL as it approaches its next earnings release. In that report, analysts expect DAL to post earnings of $1.38 per share. This would mark year-over-year growth of 6.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.34 billion, up 5.58% 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 +5.54%, respectively.

Investors might also notice recent changes to analyst estimates for DAL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. DAL is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, DAL is holding a Forward P/E ratio of 8.34. This represents a discount compared to its industry's average Forward P/E of 9.75.

Meanwhile, DAL's PEG ratio is currently 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.64 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.

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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