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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 $20.90, marking a +1.85% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.21%.

Heading into today, shares of the world's largest airline had gained 1.84% over the past month, outpacing the Transportation sector's loss of 2.01% and the S&P 500's loss of 0.9% in that time.

AAL will be looking to display strength as it nears its next earnings release. On that day, AAL is projected to report earnings of -$0.94 per share, which would represent year-over-year growth of 83.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.27 billion, up 192.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$7.39 per share and revenue of $30.37 billion. These totals would mark changes of +62.41% and +75.16%, respectively, from last year.

Any recent changes to analyst estimates for AAL should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 8.65% lower. AAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% 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.

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