Back to top

Image: Bigstock

American Airlines (AAL) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

American Airlines (AAL - Free Report) closed at $16.91 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the world's largest airline had lost 15.75% over the past month, lagging the Transportation sector's loss of 3.62% and the S&P 500's loss of 0.13% in that time.

American Airlines will be looking to display strength as it nears its next earnings release. On that day, American Airlines is projected to report earnings of -$1.72 per share, which would represent year-over-year growth of 55.44%. Meanwhile, our latest consensus estimate is calling for revenue of $9.09 billion, up 125.79% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$8.65 per share and revenue of $29.55 billion. These totals would mark changes of +56% and +70.46%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. 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.

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. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.

You can find more information on all of these metrics, and much 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