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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 $19.31 in the latest trading session, marking a +1.9% move from the prior day. This move outpaced the S&P 500's daily gain of 0.23%.

Coming into today, shares of the world's largest airline had lost 4.49% in the past month. In that same time, the Transportation sector lost 0.48%, while the S&P 500 gained 0.65%.

Wall Street will be looking for positivity from AAL as it approaches its next earnings report date. In that report, analysts expect AAL to post earnings of -$0.68 per share. This would mark year-over-year growth of 87.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.53 billion, up 200.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$6.89 per share and revenue of $30.45 billion. These totals would mark changes of +64.95% and +75.64%, respectively, from last year.

It is also important to note the 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.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.31% lower. AAL is holding a Zacks Rank of #3 (Hold) right now.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.


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