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

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In the latest trading session, American Airlines (AAL - Free Report) closed at $14.27, marking a +1.71% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.16%.

Coming into today, shares of the world's largest airline had lost 6.22% in the past month. In that same time, the Transportation sector lost 7.46%, while the S&P 500 lost 7.59%.

Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.51, up 151.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.34 billion, up 48.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.82 per share and revenue of $48.19 billion. These totals would mark changes of +90.21% and +61.27%, respectively, from last year.

Any recent changes to analyst estimates for American Airlines 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 10.96% higher. American Airlines currently has a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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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