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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know

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American Airlines (AAL - Free Report) closed at $23.93 in the latest trading session, marking a -0.54% move from the prior day. This change lagged the S&P 500's 0.15% gain on the day.

Coming into today, shares of the world's largest airline had gained 12.85% in the past month. In that same time, the Transportation sector gained 4.88%, while the S&P 500 gained 6.19%.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. In that report, analysts expect AAL to post earnings of -$3.86 per share. This would mark a year-over-year decline of 45.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, down 52.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$7.76 per share and revenue of $26.03 billion. These totals would mark changes of +60.53% and +50.15%, respectively, from last year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.87% lower. AAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 13% 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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