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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know

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American Airlines (AAL - Free Report) closed the most recent trading day at $22.56, moving -1.53% from the previous trading session. This change lagged the S&P 500's 0.33% gain on the day.

Prior to today's trading, shares of the world's largest airline had gained 0.73% over the past month. This has outpaced the Transportation sector's gain of 0.29% and lagged the S&P 500's gain of 4.77% in that time.

AAL will be looking to display strength as it nears its next earnings release, which is expected to be April 22, 2021. The company is expected to report EPS of -$3.82, down 44.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.1 billion, down 51.83% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$7.72 per share and revenue of $26.21 billion, which would represent changes of +60.73% and +51.15%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 1.22% lower. 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 223, which puts it in the bottom 13% 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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