In the last trading session, Danaos (DAC) closed at USD 75.25, a move of + 0.6% compared to the previous day. That change fell short of the S&P 500’s 0.75% daily gain.
Today the shares of the shipping company rose 19.68% last month. At the same time, the transportation sector lost 4.85% while the S&P 500 gained 2.91%.
Investors will be hoping for strength from DAC as it nears its next earnings release. The company is expected to post earnings per share of $ 3.39, an increase of 98.25% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate is forecasting net sales of $ 141.96 million, up 21.52% from the same period last year.
DAC’s Zacks Consensus Estimates for the full year project earnings per share of $ 13.48 and sales of $ 574.36 million. These results would represent changes of +87.74% and +24.43% compared to the previous year.
Investors might also notice the recent changes in analyst estimates for DAC. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, we can interpret positive valuation revisions as a good sign of the company’s business outlook.
Research has shown that these estimate revisions correlate directly with short-term stock price dynamics. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these estimation changes into account and provides an actionable rating system.
The Zacks Rank system ranges from # 1 (strong buy) to # 5 (strong sell) and has a proven, externally audited track record of outperforming the EPS estimate is down 2.6% in the last month. DAC currently has a Zacks rank of # 3 (Hold).
Valuation is also important, so investors should note that DAC currently has a forward P / E of 5.55. The industry has an average forward P / E of 5.78, so we might conclude that DAC is trading at a discount by comparison.
The transportation and shipping industries are part of the transportation sector. This industry currently has a Zacks Industry Rank of 80, making it the top 32% of all 250+ industries.
Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks rank of each stock within the groups. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
Track all of these price action metrics and many more on Zacks.com.
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