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Danaos (DAC) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Danaos (DAC) closed at $74.60, marking a +0.85% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.2%.

Prior to today's trading, shares of the shipping company had lost 9.68% over the past month. This has lagged the Transportation sector's gain of 6.69% and the S&P 500's gain of 5.66% in that time.

Investors will be hoping for strength from DAC as it approaches its next earnings release, which is expected to be November 8, 2021. On that day, DAC is projected to report earnings of $3.26 per share, which would represent year-over-year growth of 70.68%. Our most recent consensus estimate is calling for quarterly revenue of $157.88 million, up 32.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.10 per share and revenue of $597.81 million, which would represent changes of +82.45% and +29.51%, respectively, from the prior year.

Any recent changes to analyst estimates for DAC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 remained stagnant. DAC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, DAC currently has a Forward P/E ratio of 5.65. This represents a premium compared to its industry's average Forward P/E of 4.66.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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 DAC in the coming trading sessions, be sure to utilize Zacks.com.


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