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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 $24.24, marking a -0.78% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%.

Heading into today, shares of the world's largest airline had gained 14.69% over the past month, outpacing the Transportation sector's gain of 3.28% and the S&P 500's gain of 0.41% in that time.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. The company is expected to report EPS of -$2.48, up 68.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 340.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$8.72 per share and revenue of $27.91 billion. These totals would mark changes of +55.65% and +60.97%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AAL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.59% lower. 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 230, putting it in the bottom 10% 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.

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


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