American Airlines (AAL) ended the recent trading session at $15.03, demonstrating a +1.14% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.09%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq gained 0.13%.
The world's largest airline's shares have seen an increase of 11.65% over the last month, surpassing the Transportation sector's gain of 5.11% and the S&P 500's gain of 1.89%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.54, indicating a 37.21% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.24 billion, up 4.27% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.72 per share and a revenue of $54.82 billion, demonstrating changes of -63.27% and +1.12%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.87% downward. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, American Airlines currently has a Forward P/E ratio of 20.6. This represents a premium compared to its industry average Forward P/E of 11.22.
Investors should also note that AAL has a PEG ratio of 2.17 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.77 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>American Airlines Group Inc. (AAL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
