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

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American Airlines (AAL - Free Report) closed the most recent trading day at $21.51, moving +1.41% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.52%.

Coming into today, shares of the world's largest airline had lost 17.85% in the past month. In that same time, the Transportation sector lost 5.58%, while the S&P 500 gained 2.25%.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. On that day, AAL is projected to report earnings of -$4.35 per share, which would represent year-over-year growth of 44.37%. Meanwhile, our latest consensus estimate is calling for revenue of $7.15 billion, up 340.84% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$8.74 per share and revenue of $28.13 billion. These totals would mark changes of +55.54% and +62.27%, respectively, from last year.

Any recent changes to analyst estimates for AAL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. AAL is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 229, 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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