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Delta Air Lines (DAL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Delta Air Lines (DAL) closed the most recent trading day at $57.07, moving -0.68% from the previous trading session. This change lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.66%.

Prior to today's trading, shares of the airline had gained 3.76% over the past month. This has outpaced the Transportation sector's gain of 2.76% and lagged the S&P 500's gain of 4.09% in that time.

DAL will be looking to display strength as it nears its next earnings release. On that day, DAL is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 6.92%. Meanwhile, our latest consensus estimate is calling for revenue of $11.34 billion, up 5.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.01 per share and revenue of $46.90 billion. These totals would mark changes of +24.07% and +5.54%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. DAL is currently a Zacks Rank #3 (Hold).

Looking at its valuation, DAL is holding a Forward P/E ratio of 8.2. This represents a discount compared to its industry's average Forward P/E of 9.2.

Investors should also note that DAL has a PEG ratio of 0.69 right now. 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. DAL's industry had an average PEG ratio of 0.64 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DAL in the coming trading sessions, be sure to utilize

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