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American Airlines (AAL) Gains As Market Dips: What You Should Know

Zacks Equity Research
·2 mins read

American Airlines (AAL) closed the most recent trading day at $12.36, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.

Prior to today's trading, shares of the world's largest airline had lost 7% over the past month. This has lagged the Transportation sector's gain of 3.84% and the S&P 500's gain of 5.22% in that time.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. This is expected to be October 22, 2020. In that report, analysts expect AAL to post earnings of -$5.62 per share. This would mark a year-over-year decline of 495.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.80 billion, down 76.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$19.55 per share and revenue of $17.31 billion, which would represent changes of -498.98% and -62.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AAL. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.

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. The Zacks Consensus EPS estimate has moved 3.08% lower within the past month. AAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 244, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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