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American Airlines (AAL) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·2 mins read

In the latest trading session, American Airlines (AAL) closed at $13.63, marking a -1.23% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Prior to today's trading, shares of the world's largest airline had gained 8.83% over the past month. This has outpaced the Transportation sector's gain of 5.43% and the S&P 500's gain of 0.6% in that time.

AAL will be looking to display strength as it nears its next earnings release. On that day, AAL is projected to report earnings of -$5.66 per share, which would represent a year-over-year decline of 498.59%. Our most recent consensus estimate is calling for quarterly revenue of $2.91 billion, down 75.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$18.92 per share and revenue of $17.92 billion, which would represent changes of -486.12% and -60.85%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AAL currently has a Zacks Rank of #4 (Sell).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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