Delta Air Lines (DAL) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Delta Air Lines (DAL) closed at $40.15, marking a -0.07% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.2%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.21%.
Shares of the airline witnessed a loss of 10.55% over the previous month, beating the performance of the Transportation sector with its loss of 19.48% and underperforming the S&P 500's loss of 1.49%.
The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company is predicted to post an EPS of $1.55, indicating a 23.65% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.58 billion, up 0.6% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.99 per share and revenue of $59.63 billion, indicating changes of -4.16% and +2.73%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.68% lower. Delta Air Lines is currently sporting a Zacks Rank of #4 (Sell).
With respect to valuation, Delta Air Lines is currently being traded at a Forward P/E ratio of 6.7. This expresses a discount compared to the average Forward P/E of 9.16 of its industry.
It is also worth noting that DAL currently has a PEG ratio of 0.88. 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 average PEG ratio for the Transportation - Airline industry stood at 0.88 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 223, this industry ranks in the bottom 12% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report