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

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In the latest trading session, American Airlines (AAL - Free Report) closed at $15.52, marking a +0.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Prior to today's trading, shares of the world's largest airline had lost 12.48% over the past month. This has lagged the Transportation sector's loss of 3.02% and the S&P 500's gain of 0.83% in that time.

Investors will be hoping for strength from AAL as it approaches its next earnings release. The company is expected to report EPS of -$3.83, down 433.04% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.12 billion, down 63.61% from the year-ago period.

Investors might also notice recent changes to analyst estimates for AAL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. AAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 17% 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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