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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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American Airlines (AAL - Free Report) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the world's largest airline had gained 12.19% over the past month, outpacing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.41% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $1.45, up 90.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.73 billion, up 2.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $52.95 billion. These totals would mark changes of +464% and +8.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 7.3% higher within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.68 right now. Its industry sports an average Forward P/E of 10.81, so we one might conclude that American Airlines is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
American Airlines (AAL - Free Report) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the world's largest airline had gained 12.19% over the past month, outpacing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.41% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $1.45, up 90.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.73 billion, up 2.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $52.95 billion. These totals would mark changes of +464% and +8.13%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 7.3% higher within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.68 right now. Its industry sports an average Forward P/E of 10.81, so we one might conclude that American Airlines is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.