American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
American Airlines (AAL) closed at $15.35 in the latest trading session, marking a +0.33% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.12%.
Prior to today's trading, shares of the world's largest airline had lost 1.03% over the past month. This has lagged the Transportation sector's gain of 1.53% and the S&P 500's gain of 3.55% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. In that report, analysts expect American Airlines to post earnings of -$0.28 per share. This would mark a year-over-year decline of 660%. In the meantime, our current consensus estimate forecasts the revenue to be $12.56 billion, indicating a 3.05% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.52 per share and a revenue of $55.11 billion, signifying shifts of -4.91% and +4.4%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.83% decrease. American Airlines currently has a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 6.07. For comparison, its industry has an average Forward P/E of 8.86, which means American Airlines is trading at a discount to the group.
Meanwhile, AAL's PEG ratio is currently 0.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
