American Airlines (AAL) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Prior to today's trading, shares of the world's largest airline had gained 3.18% over the past month. This has outpaced the Transportation sector's loss of 0.53% and lagged the S&P 500's gain of 3.78% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $1.40 per share. This would mark year-over-year growth of 84.21%. Our most recent consensus estimate is calling for quarterly revenue of $13.69 billion, up 2.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $52.9 billion. These totals would mark changes of +448% and +8.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 1.78% higher within the past month. American Airlines is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.44 right now. This represents a discount compared to its industry's average Forward P/E of 10.46.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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