Delta Air Lines (DAL) Dips More Than Broader Market: What You Should Know

Market participants will be closely following the financial results of Delta Air Lines in its upcoming release. In that report, analysts expect Delta Air Lines to post earnings of $2.19 per share. This would mark year-over-year growth of 28.07%. Meanwhile, the latest consensus estimate predicts the revenue to be $17.68 billion, indicating a 6.02% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $6.54 per share and a revenue of $66.56 billion, demonstrating changes of +12.37% and +5.04%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Delta Air Lines. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 0.1% upward. Delta Air Lines is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Delta Air Lines is currently being traded at a Forward P/E ratio of 12.73. This represents a premium compared to its industry average Forward P/E of 11.23.

Meanwhile, DAL's PEG ratio is currently 1.09. 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 Transportation - Airline industry currently had an average PEG ratio of 0.89 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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