American Airlines (AAL) closed the most recent trading day at $16.12, moving +0.56% from the previous trading session. This change lagged the S&P 500's 0.76% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq lost 0.98%.
Heading into today, shares of the world's largest airline had lost 3.95% over the past month, lagging the Transportation sector's gain of 0.07% and the S&P 500's loss of 3.91% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. On that day, American Airlines is projected to report earnings of $0 per share, which would represent year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $12.25 billion, up 37.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.15 per share and revenue of $53.57 billion, which would represent changes of +330% and +9.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 0.46% higher within the past month. American Airlines currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 7.47 right now. This represents a discount compared to its industry's average Forward P/E of 12.9.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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