Back to top

Image: Bigstock

American Airlines (AAL) Stock Moves -1.5%: What You Should Know

Read MoreHide Full Article

American Airlines (AAL - Free Report) closed at $16.47 in the latest trading session, marking a -1.5% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 2.95%. Meanwhile, the Dow experienced a drop of 2.59%, and the technology-dominated Nasdaq saw a decrease of 3.56%.

The world's largest airline's stock has climbed by 16.68% in the past month, exceeding the Transportation sector's loss of 3.44% and the S&P 500's gain of 3.15%.

Market participants will be closely following the financial results of American Airlines in its upcoming release. On that day, American Airlines is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 96.55%. Our most recent consensus estimate is calling for quarterly revenue of $13.34 billion, up 2.1% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.65 per share and a revenue of $53.89 billion, demonstrating changes of -37.74% and +2.08%, respectively, from the preceding year.

Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.57% higher. At present, American Airlines boasts a Zacks Rank of #3 (Hold).

In terms of valuation, American Airlines is presently being traded at a Forward P/E ratio of 10.12. This represents a discount compared to its industry's average Forward P/E of 10.17.

One should further note that AAL currently holds a PEG ratio of 0.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.94 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 31, finds itself in the top 13% echelons 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


American Airlines Group Inc. (AAL) - free report >>

Published in