American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
American Airlines (AAL) closed at $11.57 in the latest trading session, marking a -0.52% move from the prior day. This change lagged the S&P 500's daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the world's largest airline had lost 30.36% in the past month. In that same time, the Transportation sector gained 1.01%, while the S&P 500 gained 3.92%.
Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. This is expected to be July 23, 2020. On that day, AAL is projected to report earnings of -$7.03 per share, which would represent a year-over-year decline of 486.26%. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, down 88.64% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.16 per share and revenue of $20.41 billion. These totals would mark changes of -409.39% and -55.4%, respectively, from last year.
Any recent changes to analyst estimates for AAL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection has moved 3.32% higher. AAL is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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