American Airlines (AAL) closed the most recent trading day at $28, moving -0.99% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.
Heading into today, shares of the world's largest airline had lost 3.45% over the past month, lagging the Transportation sector's gain of 0.69% and the S&P 500's gain of 2.48% in that time.
AAL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.25, up 20.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.36 billion, up 3.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.99 per share and revenue of $45.81 billion. These totals would mark changes of +9.67% and +2.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. AAL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AAL is holding a Forward P/E ratio of 5.67. This valuation marks a discount compared to its industry's average Forward P/E of 9.87.
It is also worth noting that AAL currently has a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline was holding an average PEG ratio of 0.65 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
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