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American Airlines (AAL) Dips More Than Broader Markets: What You Should Know

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American Airlines (AAL - Free Report) closed the most recent trading day at $14.20, moving -0.7% from the previous trading session. This move lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 0.62%.

Prior to today's trading, shares of the world's largest airline had lost 23.77% over the past month. This has lagged the Transportation sector's loss of 5.38% and the S&P 500's loss of 6.57% in that time.

Investors will be hoping for strength from American Airlines as it approaches its next earnings release. On that day, American Airlines is projected to report earnings of -$2.43 per share, which would represent year-over-year growth of 43.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.52 billion, up 112.45% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.11 per share and revenue of $42.35 billion. These results would represent year-over-year changes of +74.82% and +41.71%, respectively.

Investors might also notice recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 21.79% lower within the past month. American Airlines 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 242, which puts it in the bottom 5% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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