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

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In the latest trading session, American Airlines (AAL - Free Report) closed at $23.86, marking a -0.17% move from the previous day. This change lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.76%.

Coming into today, shares of the world's largest airline had gained 7.8% in the past month. In that same time, the Transportation sector gained 6.7%, while the S&P 500 gained 4.55%.

AAL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$3.99, down 50.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.08 billion, down 52.14% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$7.76 per share and revenue of $26.03 billion. These results would represent year-over-year changes of +60.53% and +50.15%, respectively.

Any recent changes to analyst estimates for AAL should also be noted by investors. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.87% lower. AAL is currently a Zacks Rank #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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