Delta Air Lines (DAL) ended the recent trading session at $57.84, demonstrating a -2.05% change from the preceding day's closing price. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 0.34%.
Heading into today, shares of the airline had gained 5.48% over the past month, outpacing the Transportation sector's gain of 0.13% and the S&P 500's gain of 1.67%.
The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company is expected to report EPS of $1.48, down 1.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.77 billion, up 0.59% from the prior-year quarter.
DAL's full-year Zacks Consensus Estimates are calling for earnings of $5.63 per share and revenue of $61.84 billion. These results would represent year-over-year changes of -8.6% and +0.32%, respectively.
Investors should also note any recent changes to analyst estimates for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Delta Air Lines presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Delta Air Lines is presently trading at a Forward P/E ratio of 10.49. This signifies a premium in comparison to the average Forward P/E of 9.75 for its industry.
We can additionally observe that DAL currently boasts a PEG ratio of 1.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation – Airline industry had an average PEG ratio of 0.86 as trading concluded yesterday.
The Transportation – Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
