Delta Air Lines (DAL) closed the latest trading day at $64.49, indicating a +1.82% change from the previous session’s end. This change outpaced the S&P 500’s 0.3% gain on the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.27%.
The airline’s stock has climbed by 17.04% in the past month, exceeding the Transportation sector’s gain of 4.52% and the S&P 500’s gain of 2.1%.
Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. The company’s upcoming EPS is projected at $1.75, signifying a 36.72% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.91 billion, reflecting a 4.84% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $59.41 billion. These totals would mark changes of -2.88% and +2.35%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Delta Air Lines. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.87% downward. Delta Air Lines presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Delta Air Lines is currently trading at a Forward P/E ratio of 10.44. For comparison, its industry has an average Forward P/E of 10.44, which means Delta Air Lines is trading at no noticeable deviation to the group.
We can also see that DAL currently has a PEG ratio of 1.2. 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. The Transportation – Airline industry currently had an average PEG ratio of 1.16 as of yesterday’s close.
