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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, American Airlines (AAL - Free Report) closed at $13.26, marking a -0.38% move from the previous day. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the world's largest airline had lost 13.8% over the past month, lagging the Transportation sector's loss of 5.68% and the S&P 500's gain of 0.19% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 8.32.
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. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, American Airlines (AAL - Free Report) closed at $13.26, marking a -0.38% move from the previous day. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the world's largest airline had lost 13.8% over the past month, lagging the Transportation sector's loss of 5.68% and the S&P 500's gain of 0.19% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.31% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 4.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 8.32.
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. AAL's industry had an average PEG ratio of 0.35 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.