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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 $14.50, marking a +0.55% move from the previous day. This change outpaced the S&P 500's 0.03% loss on the day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the world's largest airline had gained 3.22% over the past month. This has lagged the Transportation sector's gain of 11.37% and the S&P 500's gain of 6.23% in that time.

American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.54 per share. This would mark year-over-year growth of 138.03%. Our most recent consensus estimate is calling for quarterly revenue of $12.72 billion, up 34.9% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$0.21 per share and revenue of $48.49 billion. These results would represent year-over-year changes of +97.49% and +62.28%, respectively.

It is also important to note the recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 21.51% higher. American Airlines is currently sporting 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 63, which puts it in the top 25% 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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