Danaos (DAC) closed the most recent trading day at $81.05, moving +1.99% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.25%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the shipping company had lost 8.79% over the past month, lagging the Transportation sector’s loss of 4.2% and outpacing the S&P 500’s loss of 11.03% in that time.
Danaos will be looking to display strength as it nears its next earnings release, which is expected to be May 16, 2022. In that report, analysts expect Danaos to post earnings of $9.48 per share. This would mark year-over-year growth of 234.98%. Meanwhile, our latest consensus estimate is calling for revenue of $212.86 million, up 61.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $30.17 per share and revenue of $911.98 million, which would represent changes of +71.42% and +32.27%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Danaos. Recent revisions tend to reflect the latest near-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. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Danaos currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Danaos has a Forward P/E ratio of 2.63 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 3.89.
The Transportation – Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.