Delta Air Lines (DAL – Free Report) closed at $39.20 in the latest trading session, marking a +1.19% move from the prior day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.34%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.56%.
Shares of the airline have depreciated by 0.51% over the course of the past month, underperforming the Transportation sector’s gain of 2.57% and the S&P 500’s gain of 2.56%.
The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. The company is scheduled to release its earnings on January 12, 2024. The company is forecasted to report an EPS of $1.16, showcasing a 21.62% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.13 billion, up 5.17% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Delta Air Lines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.06% downward. Delta Air Lines is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Delta Air Lines is currently being traded at a Forward P/E ratio of 5.8. This denotes a discount relative to the industry’s average Forward P/E of 8.3.
It is also worth noting that DAL currently has a PEG ratio of 0.18. 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. As of the close of trade yesterday, the Transportation – Airline industry held an average PEG ratio of 0.36.
The Transportation – Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank is ordered 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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