Danaos (DAC) Outpaces Stock Market Gains: What You Should Know

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Danaos (DAC) closed at $67.28 in the latest trading session, marking a +0.03% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.02%.

Prior to today’s trading, shares of the shipping company had gained 5.51% over the past month. This has outpaced the Transportation sector’s loss of 2.04% and the S&P 500’s gain of 0.04% in that time.

Investors will be hoping for strength from DAC as it approaches its next earnings release. On that day, DAC is projected to report earnings of $3.39 per share, which would represent year-over-year growth of 98.25%. Our most recent consensus estimate is calling for quarterly revenue of $146.3 million, up 25.24% from the year-ago period.

DAC’s full-year Zacks Consensus Estimates are calling for earnings of $13.84 per share and revenue of $586.12 million. These results would represent year-over-year changes of +92.76% and +26.98%, respectively.

It is also important to note the recent changes to analyst estimates for DAC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 2.4% lower within the past month. DAC is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DAC has a Forward P/E ratio of 4.86 right now. For comparison, its industry has an average Forward P/E of 6.27, which means DAC 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 101, putting it in the top 40% 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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