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American Airlines (AAL) Gains But Lags Market: What You Should Know
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In the latest trading session, American Airlines (AAL - Free Report) closed at $16.34, marking a +0.37% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 10%.
Heading into today, shares of the world's largest airline had gained 29.62% over the past month, outpacing the Transportation sector's gain of 3.2% and the S&P 500's gain of 2.3% in that time.
American Airlines will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. On that day, American Airlines is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 159.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.92 billion, up 37.02% from the year-ago period.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 17.3% higher. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 8.45 right now. This represents a discount compared to its industry's average Forward P/E of 12.89.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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
In the latest trading session, American Airlines (AAL - Free Report) closed at $16.34, marking a +0.37% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 10%.
Heading into today, shares of the world's largest airline had gained 29.62% over the past month, outpacing the Transportation sector's gain of 3.2% and the S&P 500's gain of 2.3% in that time.
American Airlines will be looking to display strength as it nears its next earnings release, which is expected to be January 26, 2023. On that day, American Airlines is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 159.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.92 billion, up 37.02% from the year-ago period.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 17.3% higher. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 8.45 right now. This represents a discount compared to its industry's average Forward P/E of 12.89.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.