Delta Air Lines (DAL) stock closed at $47.80 on Wednesday, representing a 1.36% increase from the previous day. This gain outpaced the S&P 500’s daily rise of 0.25%. The Dow Jones Industrial Average also saw an upward trend, increasing by 0.2%, while the tech-heavy Nasdaq rose by 0.56%. Looking at the recent performance of DAL, shares have gained 15.08% in the past month. This growth outperformed both the Transportation sector, which gained 2.16%, and the S&P 500, which gained 1.65% during the same period.
Investors are keenly awaiting the upcoming earnings release of Delta Air Lines. Analysts are projecting earnings of $1.54 per share for the quarter, indicating a 24.14% decline year-over-year. However, the consensus revenue estimate is $15.49 billion, which remains unchanged from the same quarter last year. For the entire fiscal year, analysts anticipate earnings of $6.11 per share and revenue of $59.45 billion. These figures represent changes of -2.24% and +2.42%, respectively, from the prior year.
In addition to the earnings report, investors should pay close attention to any changes in analyst estimates for Delta Air Lines. These revisions provide insights into the evolving nature of near-term business trends. Positive estimate revisions are often indicative of analyst optimism regarding a company’s business prospects and profitability. Our research has shown that these estimate changes have a direct correlation with near-term stock prices. To capitalize on this relationship, we developed the Zacks Rank, a proprietary model that incorporates these estimate changes and provides an actionable rating system. The Zacks Rank, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a proven track record of superior performance, as independently audited. Since 1988, stocks with a Zacks Rank of #1 have yielded an average annual return of +25%.
Over the past 30 days, our consensus EPS projection has increased by 3.11%. Currently, Delta Air Lines holds a Zacks Rank of #3 (Hold).
Looking at valuation, Delta Air Lines is currently trading with a Forward P/E ratio of 7.72. This represents a discount compared to its industry’s average Forward P/E of 10.22. DAL’s PEG ratio currently stands at 0.91. This metric is similar to the widely-known P/E ratio, but it also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Transportation – Airline industry was 0.87 at the market close yesterday. The Transportation – Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it within the top 31% of all 250+ industries. The Zacks Industry Rank measures the strength of individual industry groups by evaluating the average Zacks Rank of the constituent stocks. Our research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
