Danaos (DAC) closed the most recent trading day at $91.50, moving +0.04% from the previous trading session. This change lagged the S&P 500’s 1.89% gain on the day. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 0.75%.
Coming into today, shares of the shipping company had gained 22.52% in the past month. In that same time, the Transportation sector lost 5.63%, while the S&P 500 lost 7.36%.
Wall Street will be looking for positivity from Danaos as it approaches its next earnings report date. The company is expected to report EPS of $6.01, up 162.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $201.48 million, up 68.4% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Danaos. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 39.87% higher. Danaos is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Danaos’s current valuation metrics, including its Forward P/E ratio of 3.05. For comparison, its industry has an average Forward P/E of 3.95, which means Danaos is trading at a discount to the group.
The Transportation – Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 14% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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