Back to top

Image: Bigstock

American Airlines (AAL) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, American Airlines (AAL - Free Report) closed at $12.29, marking a +0.33% move from the previous day. This move lagged the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 0.74%.

Prior to today's trading, shares of the world's largest airline had lost 6.49% over the past month. This has lagged the Transportation sector's gain of 0.02% and the S&P 500's loss of 4.83% in that time.

Investors will be hoping for strength from AAL as it approaches its next earnings release. On that day, AAL is projected to report earnings of -$5.66 per share, which would represent a year-over-year decline of 498.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.91 billion, down 75.56% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$18.92 per share and revenue of $17.92 billion. These results would represent year-over-year changes of -486.12% and -60.85%, respectively.

It is also important to note the recent changes to analyst estimates for AAL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. AAL is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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