In the latest close session, Delta Air Lines (DAL) was up +2.17% at $60.24. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.4%.
The airline's stock has climbed by 4.65% in the past month, exceeding the Transportation sector's loss of 1.69% and the S&P 500's gain of 3.25%.
The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company's upcoming EPS is projected at $1.48, signifying a 1.33% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $15.77 billion, showing a 0.59% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.63 per share and a revenue of $61.84 billion, signifying shifts of -8.6% and +0.32%, respectively, from the last year.
Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. Recent revisions tend to reflect the latest near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.68% lower. Currently, Delta Air Lines is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Delta Air Lines is currently trading at a Forward P/E ratio of 10.47. This represents a premium compared to its industry average Forward P/E of 10.
Meanwhile, DAL's PEG ratio is currently 1.84. 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. Transportation – Airline stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.
The Transportation – Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 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.
