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

Delta Air Lines (DAL) closed the most recent trading day at $55.99, moving -0.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Coming into today, shares of the airline had gained 2.06% in the past month. In that same time, the Transportation sector gained 1.21%, while the S&P 500 gained 3.12%.

DAL will be looking to display strength as it nears its next earnings release. In that report, analysts expect DAL to post earnings of $2.16 per share. This would mark year-over-year growth of 22.03%. Meanwhile, our latest consensus estimate is calling for revenue of $12.35 billion, up 4.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.70 per share and revenue of $46.54 billion, which would represent changes of +18.58% and +4.73%, respectively, from the prior year.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.1% higher. DAL is currently a Zacks Rank #3 (Hold).

Digging into valuation, DAL currently has a Forward P/E ratio of 8.43. This valuation marks a discount compared to its industry's average Forward P/E of 9.93.

Investors should also note that DAL has a PEG ratio of 0.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DAL's industry had an average PEG ratio of 0.62 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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