We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Airlines (AAL) Flat As Market Sinks: What You Should Know
Read MoreHide Full Article
American Airlines (AAL - Free Report) closed the most recent trading day at $13.06, making no change from the previous trading session. This change was narrower than the S&P 500's 1.64% loss on the day. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the world's largest airline had lost 11.64% in the past month. In that same time, the Transportation sector lost 2.87%, while the S&P 500 gained 0.89%.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.62 per share. This would mark a year-over-year decline of 10.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.58 billion, up 0.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $53.14 billion. These totals would mark changes of +476% and +8.5%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 14.38% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 4.53. Its industry sports an average Forward P/E of 7.76, so we one might conclude that American Airlines is trading at a discount comparatively.
Also, we should mention that AAL has a PEG ratio of 0.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.39 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Airlines (AAL) Flat As Market Sinks: What You Should Know
American Airlines (AAL - Free Report) closed the most recent trading day at $13.06, making no change from the previous trading session. This change was narrower than the S&P 500's 1.64% loss on the day. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the world's largest airline had lost 11.64% in the past month. In that same time, the Transportation sector lost 2.87%, while the S&P 500 gained 0.89%.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.62 per share. This would mark a year-over-year decline of 10.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.58 billion, up 0.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $53.14 billion. These totals would mark changes of +476% and +8.5%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 14.38% lower within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 4.53. Its industry sports an average Forward P/E of 7.76, so we one might conclude that American Airlines is trading at a discount comparatively.
Also, we should mention that AAL has a PEG ratio of 0.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Airline industry currently had an average PEG ratio of 0.39 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.