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

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American Airlines (AAL - Free Report) closed the most recent trading day at $18.07, moving +0.11% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Prior to today's trading, shares of the world's largest airline had gained 10.87% over the past month. This has outpaced the Transportation sector's gain of 3.28% and the S&P 500's gain of 3.11% in that time.

American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.78, up 53.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.05 billion, up 124.7% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$8.71 per share and revenue of $29.51 billion, which would represent changes of +55.7% and +70.24%, respectively, from the prior year.

Investors should also note any 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.75% lower. American Airlines is holding a Zacks Rank of #4 (Sell) right now.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 7% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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