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American Airlines (AAL) Rises But Trails Market: What Investors Should Know
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The latest trading session saw American Airlines (AAL - Free Report) ending at $14.30, denoting a +0.42% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Shares of the world's largest airline witnessed a gain of 14.84% over the previous month, beating the performance of the Transportation sector with its gain of 8.79% and the S&P 500's gain of 5.16%.
Market participants will be closely following the financial results of American Airlines in its upcoming release. In that report, analysts expect American Airlines to post earnings of $0.03 per share. This would mark a year-over-year decline of 97.44%. At the same time, our most recent consensus estimate is projecting a revenue of $13.02 billion, reflecting a 1.29% fall from the equivalent quarter last year.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.40 per share and revenue of $52.76 billion. These results would represent year-over-year changes of +380% and +7.73%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.94 right now. This expresses a discount compared to the average Forward P/E of 7.58 of its industry.
It's also important to note that AAL currently trades at a PEG ratio of 0.11. 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. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.31.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Airlines (AAL) Rises But Trails Market: What Investors Should Know
The latest trading session saw American Airlines (AAL - Free Report) ending at $14.30, denoting a +0.42% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.66%.
Shares of the world's largest airline witnessed a gain of 14.84% over the previous month, beating the performance of the Transportation sector with its gain of 8.79% and the S&P 500's gain of 5.16%.
Market participants will be closely following the financial results of American Airlines in its upcoming release. In that report, analysts expect American Airlines to post earnings of $0.03 per share. This would mark a year-over-year decline of 97.44%. At the same time, our most recent consensus estimate is projecting a revenue of $13.02 billion, reflecting a 1.29% fall from the equivalent quarter last year.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.40 per share and revenue of $52.76 billion. These results would represent year-over-year changes of +380% and +7.73%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.94 right now. This expresses a discount compared to the average Forward P/E of 7.58 of its industry.
It's also important to note that AAL currently trades at a PEG ratio of 0.11. 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. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.31.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.