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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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The latest trading session saw American Airlines (AAL - Free Report) ending at $10.88, denoting a +1.02% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.75% for the day. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.
The the stock of world's largest airline has risen by 10.57% in the past month, leading the Transportation sector's gain of 2.69% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.04, showcasing an 89.47% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.47 billion, indicating a 0.12% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.06 per share and a revenue of $53.55 billion, representing changes of -60% and +1.44%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 10.22% higher within the past month. Currently, American Airlines is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 10.14 right now. Its industry sports an average Forward P/E of 9.66, so one might conclude that American Airlines is trading at a premium comparatively.
Investors should also note that AAL has a PEG ratio of 0.27 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. The average PEG ratio for the Transportation - Airline industry stood at 1.01 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 207, finds itself in the bottom 19% echelons 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) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw American Airlines (AAL - Free Report) ending at $10.88, denoting a +1.02% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.75% for the day. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.
The the stock of world's largest airline has risen by 10.57% in the past month, leading the Transportation sector's gain of 2.69% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.04, showcasing an 89.47% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.47 billion, indicating a 0.12% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.06 per share and a revenue of $53.55 billion, representing changes of -60% and +1.44%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 10.22% higher within the past month. Currently, American Airlines is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 10.14 right now. Its industry sports an average Forward P/E of 9.66, so one might conclude that American Airlines is trading at a premium comparatively.
Investors should also note that AAL has a PEG ratio of 0.27 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. The average PEG ratio for the Transportation - Airline industry stood at 1.01 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 207, finds itself in the bottom 19% echelons 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.