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American Airlines (AAL) Gains But Lags Market: What You Should Know
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American Airlines (AAL - Free Report) closed at $14.18 in the latest trading session, marking a +1.36% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Heading into today, shares of the world's largest airline had gained 2.87% over the past month, outpacing the Transportation sector's loss of 3.85% and the S&P 500's loss of 4.61% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, up 140.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.72 billion, up 34.9% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 12.6% higher. American Airlines currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 8.08. Its industry sports an average Forward P/E of 11.79, so we one might conclude that American Airlines is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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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American Airlines (AAL) Gains But Lags Market: What You Should Know
American Airlines (AAL - Free Report) closed at $14.18 in the latest trading session, marking a +1.36% move from the prior day. The stock lagged the S&P 500's daily gain of 2.28%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Heading into today, shares of the world's largest airline had gained 2.87% over the past month, outpacing the Transportation sector's loss of 3.85% and the S&P 500's loss of 4.61% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, up 140.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.72 billion, up 34.9% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 12.6% higher. American Airlines currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 8.08. Its industry sports an average Forward P/E of 11.79, so we one might conclude that American Airlines is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.