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In the latest market close, American Airlines (AAL - Free Report) reached $12.85, with a +0.94% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the world's largest airline had lost 11.17% over the past month. This has lagged the Transportation sector's loss of 7.23% and the S&P 500's loss of 5.53% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.40, marking a 42.03% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.55 billion, showing a 0.68% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $53.11 billion, demonstrating changes of +424% and +8.46%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 17.52% lower within the past month. As of now, American Airlines holds a Zacks Rank of #3 (Hold).
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 4.85. This indicates a discount in contrast to its industry's Forward P/E of 7.41.
It's also important to note that AAL currently trades at a PEG ratio of 0.09. 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 0.3 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 224, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why the Market Dipped But (AAL) Gained Today
In the latest market close, American Airlines (AAL - Free Report) reached $12.85, with a +0.94% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the world's largest airline had lost 11.17% over the past month. This has lagged the Transportation sector's loss of 7.23% and the S&P 500's loss of 5.53% in that time.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.40, marking a 42.03% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.55 billion, showing a 0.68% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $53.11 billion, demonstrating changes of +424% and +8.46%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 17.52% lower within the past month. As of now, American Airlines holds a Zacks Rank of #3 (Hold).
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 4.85. This indicates a discount in contrast to its industry's Forward P/E of 7.41.
It's also important to note that AAL currently trades at a PEG ratio of 0.09. 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 0.3 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 224, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.