For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Delta Air Lines (DAL) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Delta Air Lines is one of 110 individual stocks in the Transportation sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Delta Air Lines is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DAL's full-year earnings has moved 28.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, DAL has moved about 24.3% on a year-to-date basis. Meanwhile, stocks in the Transportation group have gained about 14.9% on average. This means that Delta Air Lines is performing better than its sector in terms of year-to-date returns.
Another Transportation stock, which has outperformed the sector so far this year, is Union Pacific (UNP). The stock has returned 26.3% year-to-date.
Over the past three months, Union Pacific's consensus EPS estimate for the current year has increased 2.9%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Delta Air Lines belongs to the Transportation - Airline industry, a group that includes 28 individual companies and currently sits at #150 in the Zacks Industry Rank. Stocks in this group have lost about 2.9% so far this year, so DAL is performing better this group in terms of year-to-date returns.
Union Pacific, however, belongs to the Transportation - Rail industry. Currently, this 9-stock industry is ranked #64. The industry has moved +27.7% so far this year.
Delta Air Lines and Union Pacific could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).