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American Airlines (AAL) Moves 10.6% Higher: Will This Strength Last?
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American Airlines (AAL - Free Report) shares ended the last trading session 10.6% higher at $18.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10% gain over the past four weeks.
The stock jumped following its improved total revenue guidance for the first quarter as air-travel demand continues to rebound. American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period in 2019. This is better than the company’s previous view of an approximate decrease of 17%.
This world's largest airline is expected to post quarterly loss of $2.47 per share in its upcoming report, which represents a year-over-year change of +42.8%. Revenues are expected to be $8.39 billion, up 109.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For American Airlines, the consensus EPS estimate for the quarter has been revised 92.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
American Airlines is part of the Zacks Transportation - Airline industry. Southwest Airlines (LUV), another stock in the same industry, closed the last trading session 7.5% higher at $46.05. LUV has returned 1.8% in the past month.
For Southwest, the consensus EPS estimate for the upcoming report has changed -11.2% over the past month to -$0.40. This represents a change of +76.7% from what the company reported a year ago. Southwest currently has a Zacks Rank of #3 (Hold).
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American Airlines (AAL) Moves 10.6% Higher: Will This Strength Last?
American Airlines (AAL - Free Report) shares ended the last trading session 10.6% higher at $18.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10% gain over the past four weeks.
The stock jumped following its improved total revenue guidance for the first quarter as air-travel demand continues to rebound. American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period in 2019. This is better than the company’s previous view of an approximate decrease of 17%.
This world's largest airline is expected to post quarterly loss of $2.47 per share in its upcoming report, which represents a year-over-year change of +42.8%. Revenues are expected to be $8.39 billion, up 109.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For American Airlines, the consensus EPS estimate for the quarter has been revised 92.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Airlines is part of the Zacks Transportation - Airline industry. Southwest Airlines (LUV), another stock in the same industry, closed the last trading session 7.5% higher at $46.05. LUV has returned 1.8% in the past month.
For Southwest, the consensus EPS estimate for the upcoming report has changed -11.2% over the past month to -$0.40. This represents a change of +76.7% from what the company reported a year ago. Southwest currently has a Zacks Rank of #3 (Hold).