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American Airlines (AAL) Gains But Lags Market: What You Should Know

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In the latest trading session, American Airlines (AAL - Free Report) closed at $13.17, marking a +1% move from the previous day. This change lagged the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.09%.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. On that day, AAL is projected to report earnings of -$7.33 per share, which would represent a year-over-year decline of 502.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.20 billion, down 89.95% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$15.68 per share and revenue of $20.52 billion. These results would represent year-over-year changes of -420% and -55.17%, respectively.

It is also important to note the recent changes to analyst estimates for AAL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.54% lower within the past month. AAL is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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