Delta Air Lines (DAL) Gains But Lags Market: What You Should Know

In the latest trading session, Delta Air Lines (DAL) closed at $52.18, marking a +1.03% move from the previous day. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.

Coming into today, shares of the airline had gained 4.18% in the past month. In that same time, the Transportation sector gained 0.18%, while the S&P 500 gained 1.92%.

Investors will be hoping for strength from DAL as it approaches its next earnings release, which is expected to be April 10, 2019. On that day, DAL is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 10.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.37 billion, up 3.99% from the year-ago period.

DAL's full-year Zacks Consensus Estimates are calling for earnings of $6.50 per share and revenue of $46.30 billion. These results would represent year-over-year changes of +15.04% and +4.19%, respectively.

It is also important to note the recent changes to analyst estimates for DAL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.57% lower. DAL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, DAL is currently trading at a Forward P/E ratio of 7.95. For comparison, its industry has an average Forward P/E of 9.72, which means DAL is trading at a discount to the group.

We can also see that DAL currently has a PEG ratio of 0.72. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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