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American Airlines (AAL) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, American Airlines (AAL - Free Report) closed at $12.76, marking a -0.7% move from the previous day. This move lagged the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.6%.
Shares of the world's largest airline have depreciated by 8.21% over the course of the past month, underperforming the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on October 19, 2023. The company is expected to report EPS of $0.40, down 42.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.53 billion, up 0.49% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and a revenue of $53.04 billion, representing changes of +424% and +8.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 15.06% lower. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.9. This indicates a discount in contrast to its industry's Forward P/E of 7.39.
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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 12% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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American Airlines (AAL) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, American Airlines (AAL - Free Report) closed at $12.76, marking a -0.7% move from the previous day. This move lagged the S&P 500's daily gain of 1.18%. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.6%.
Shares of the world's largest airline have depreciated by 8.21% over the course of the past month, underperforming the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on October 19, 2023. The company is expected to report EPS of $0.40, down 42.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.53 billion, up 0.49% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and a revenue of $53.04 billion, representing changes of +424% and +8.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 15.06% lower. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 4.9. This indicates a discount in contrast to its industry's Forward P/E of 7.39.
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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 12% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.