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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 $15.66, marking a -1.45% move from the previous day. This change lagged the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the world's largest airline had gained 6.36% over the past month. This has outpaced the Transportation sector's gain of 0.79% and the S&P 500's gain of 3.27% in that time.

AAL will be looking to display strength as it nears its next earnings release. In that report, analysts expect AAL to post earnings of -$3.83 per share. This would mark a year-over-year decline of 433.04%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 63.61% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$19.74 per share and revenue of $17.35 billion, which would represent changes of -502.86% and -62.09%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AAL. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.6% higher. AAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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