Delta Air Lines (DAL) Stock Sinks As Market Gains: Here's Why

In the latest trading session, Delta Air Lines (DAL) closed at $60.68, marking a -1.75% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%. Prior to today's trading, shares of the airline had gained 15.44% outpaced the Transportation sector's gain of 1.99% and the S&P 500's gain of 1.85%.The investment community will be closely monitoring the performance of Delta Air Lines in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.48, marking a 1.33% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $15.77 billion, showing a 0.59% escalation compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.63 per share and a revenue of $61.84 billion, indicating changes of -8.6% and +0.32%, respectively, from the former year. 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Delta Air Lines currently has a Zacks Rank of #3 (Hold). In the context of valuation, Delta Air Lines is at present trading with a Forward P/E ratio of 10.97. This indicates a premium in contrast to its industry's Forward P/E of 10.52. Meanwhile, DAL's PEG ratio is currently 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.82 at the close of the market yesterday. The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks