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

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Delta Air Lines (DAL) closed the most recent trading day at $34.49, moving -0.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.23%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.1%.

Heading into today, shares of the airline had gained 5.14% over the past month, lagging the Transportation sector's gain of 13.77% and the S&P 500's gain of 10.76% in that time.

Wall Street will be looking for positivity from Delta Air Lines as it approaches its next earnings report date. The company is expected to report EPS of $1.54, up 413.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.93 billion, up 52.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $48.88 billion, which would represent changes of +168.63% and +63.48%, respectively, from the prior 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 1.23% higher within the past month. Delta Air Lines currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Delta Air Lines currently has a Forward P/E ratio of 12.33. This valuation marks a discount compared to its industry's average Forward P/E of 14.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% 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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