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American Airlines (AAL) Gains But Lags Market: What You Should Know

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American Airlines (AAL) closed the most recent trading day at $13.04, moving +0.77% from the previous trading session. This change lagged the S&P 500's 2.45% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.18%.

Prior to today's trading, shares of the world's largest airline had lost 22.75% over the past month. This has lagged the Transportation sector's loss of 4.82% and the S&P 500's loss of 5.71% in that time.

American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.67, up 139.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.08 billion, up 74.85% from the prior-year quarter.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$1.24 per share and revenue of $47.27 billion. These results would represent year-over-year changes of +85.2% and +58.18%, respectively.

Investors might also notice recent changes to analyst estimates for American Airlines. 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. Within the past 30 days, our consensus EPS projection has moved 9.38% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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