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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 at $13.51 in the latest trading session, marking a -1.67% move from the prior day. This move lagged the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 0.14%.

Coming into today, shares of the world's largest airline had gained 0.22% in the past month. In that same time, the Transportation sector gained 6.21%, while the S&P 500 gained 3.65%.

Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of $0.51 per share. This would mark year-over-year growth of 151.52%. Our most recent consensus estimate is calling for quarterly revenue of $13.34 billion, up 48.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.82 per share and revenue of $48.19 billion. These totals would mark changes of +90.21% and +61.27%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for American Airlines. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 16.8% higher within the past month. American Airlines 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 134, putting it in the bottom 47% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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