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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, American Airlines (AAL - Free Report) closed at $14.47, marking a +0.84% move from the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the world's largest airline had lost 10.48% over the past month, lagging the Transportation sector's loss of 1.63% and the S&P 500's gain of 1.72% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $0.01 per share. This would mark year-over-year growth of 100.43%. Our most recent consensus estimate is calling for quarterly revenue of $12.25 billion, up 37.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.16 per share and revenue of $53.57 billion, which would represent changes of +332% and +9.38%, respectively, from the prior year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 6.66. For comparison, its industry has an average Forward P/E of 11.75, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.