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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 $13.31, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Coming into today, shares of the world's largest airline had lost 11.89% in the past month. In that same time, the Transportation sector lost 4.27%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.74, up 7.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.08 per share and revenue of $53.11 billion. These totals would mark changes of +516% and +8.46%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. 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.
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.
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. The Zacks Consensus EPS estimate has moved 8.54% lower within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.3. For comparison, its industry has an average Forward P/E of 8.29, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines (AAL) Gains As Market Dips: What You Should Know
In the latest trading session, American Airlines (AAL - Free Report) closed at $13.31, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, lost 1.56%.
Coming into today, shares of the world's largest airline had lost 11.89% in the past month. In that same time, the Transportation sector lost 4.27%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.74, up 7.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.59 billion, up 0.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.08 per share and revenue of $53.11 billion. These totals would mark changes of +516% and +8.46%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. 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.
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.
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. The Zacks Consensus EPS estimate has moved 8.54% lower within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.3. For comparison, its industry has an average Forward P/E of 8.29, which means American Airlines is trading at a discount to the group.
Investors should also note that AAL has a PEG ratio of 0.08 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.