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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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American Airlines (AAL - Free Report) closed at $35.29 in the latest trading session, marking a +1.82% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 2.01%.
Heading into today, shares of the world's largest airline had lost 9.97% over the past month, outpacing the Transportation sector's loss of 10.04% and lagging the S&P 500's loss of 7.81% in that time.
Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, AAL is projected to report earnings of $0.94 per share, which would represent a year-over-year decline of 1.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.08 billion, up 4.5% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $44.66 billion. These results would represent year-over-year changes of -10.25% and +5.8%, respectively.
Investors might also notice recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 2.85% lower. AAL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AAL is currently trading at a Forward P/E ratio of 7.91. This valuation marks a discount compared to its industry's average Forward P/E of 12.46.
Investors should also note that AAL has a PEG ratio of 1.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.64 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 206, which puts it in the bottom 19% 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) Outpaces Stock Market Gains: What You Should Know
American Airlines (AAL - Free Report) closed at $35.29 in the latest trading session, marking a +1.82% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 2.01%.
Heading into today, shares of the world's largest airline had lost 9.97% over the past month, outpacing the Transportation sector's loss of 10.04% and lagging the S&P 500's loss of 7.81% in that time.
Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, AAL is projected to report earnings of $0.94 per share, which would represent a year-over-year decline of 1.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.08 billion, up 4.5% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $4.38 per share and revenue of $44.66 billion. These results would represent year-over-year changes of -10.25% and +5.8%, respectively.
Investors might also notice recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 2.85% lower. AAL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AAL is currently trading at a Forward P/E ratio of 7.91. This valuation marks a discount compared to its industry's average Forward P/E of 12.46.
Investors should also note that AAL has a PEG ratio of 1.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.64 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 206, which puts it in the bottom 19% 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.