Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, American Airlines (AAL - Free Report) closed at $11.92, marking a -1% move from the previous day. This move lagged the S&P 500's daily gain of 2.59%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 0.11%.

Prior to today's trading, shares of the world's largest airline had lost 7.31% over the past month. This has was narrower than the Transportation sector's loss of 13.13% and the S&P 500's loss of 9.22% in that time.

Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. On that day, American Airlines is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 177.78%. Meanwhile, our latest consensus estimate is calling for revenue of $13.35 billion, up 48.81% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.83 per share and revenue of $48.18 billion. These totals would mark changes of +90.1% and +61.25%, respectively, from last year.

Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 1.22% lower within the past month. American Airlines is currently sporting a Zacks Rank of #4 (Sell).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


American Airlines Group Inc. (AAL) - free report >>

Published in