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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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American Airlines (AAL - Free Report) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the world's largest airline had lost 11.17% over the past month, lagging the Transportation sector's loss of 6.54% and the S&P 500's loss of 1.27% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Our most recent consensus estimate is calling for quarterly revenue of $13.59 billion, up 0.93% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. These results would represent year-over-year changes of +518% and +8.46%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.53 right now. For comparison, its industry has an average Forward P/E of 8.43, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.34 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
American Airlines (AAL - Free Report) closed at $13.98 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the world's largest airline had lost 11.17% over the past month, lagging the Transportation sector's loss of 6.54% and the S&P 500's loss of 1.27% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of $0.75 per share. This would mark year-over-year growth of 8.7%. Our most recent consensus estimate is calling for quarterly revenue of $13.59 billion, up 0.93% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $3.09 per share and revenue of $53.11 billion. These results would represent year-over-year changes of +518% and +8.46%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.53 right now. For comparison, its industry has an average Forward P/E of 8.43, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.34 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.