Delta Air Lines (DAL) Laps the Stock Market: Here's Why

In the latest close session, Delta Air Lines (DAL) was up +2.04% at $75.63. The stock's performance was ahead of the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 0.09%. Shares of the airline have appreciated by 8.35% over the course of the past month, outperforming the Transportation sector's loss of 0.9%, and the S&P 500's gain of 4.59%.The investment community will be paying close attention to the earnings performance of Delta Air Lines in its upcoming release. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 29.05% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.42 billion, indicating a 4.65% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $5.26 per share and a revenue of $65.37 billion, demonstrating changes of -9.62% and +3.17%, respectively, from the preceding year. It is also important to note the recent changes to analyst estimates for Delta Air Lines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% 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 14.09. This signifies a premium in comparison to the average Forward P/E of 10.77 for its industry. It's also important to note that DAL currently trades at a PEG ratio of 1.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry had an average PEG ratio of 0.94 as trading concluded yesterday. The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 17% of over 250 industries. 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks