Back to top

Image: Bigstock

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

Read MoreHide Full Article

American Airlines (AAL - Free Report) closed the most recent trading day at $22.35, moving +0.68% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%.

Coming into today, shares of the world's largest airline had lost 7.11% in the past month. In that same time, the Transportation sector lost 5.83%, while the S&P 500 gained 2.17%.

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 -$2.45 per share, which would represent year-over-year growth of 68.67%. Our most recent consensus estimate is calling for quarterly revenue of $7.15 billion, up 340.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$8.74 per share and revenue of $28.13 billion, which would represent changes of +55.54% and +62.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AAL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% 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 234, which puts it in the bottom 8% 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.

Be sure to follow all of these stock-moving metrics, and many 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