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

Zacks Equity Research
·2 min read

In the latest trading session, Delta Air Lines (DAL) closed at $39.73, marking a -1.27% move from the previous day. This change lagged the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.26%.

Coming into today, shares of the airline had lost 2.54% in the past month. In that same time, the Transportation sector gained 0.79%, while the S&P 500 gained 3.27%.

DAL will be looking to display strength as it nears its next earnings release. In that report, analysts expect DAL to post earnings of -$2.36 per share. This would mark a year-over-year decline of 238.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.67 billion, down 67.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$10.60 per share and revenue of $16.89 billion. These totals would mark changes of -245.01% and -64.07%, respectively, from last year.

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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. DAL currently has a Zacks Rank of #5 (Strong Sell).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 3% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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