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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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American Airlines (AAL - Free Report) closed at $14 in the latest trading session, marking a +0.79% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 1.91%.
Heading into today, shares of the world's largest airline had lost 16.28% over the past month, lagging the Transportation sector's loss of 5.69% and the S&P 500's gain of 1.24% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.03, up 101.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.26 billion, up 37.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $53.7 billion. These totals would mark changes of +394% and +9.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.05% higher. American Airlines is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 5.63. This valuation marks a discount compared to its industry's average Forward P/E of 11.28.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
American Airlines (AAL - Free Report) closed at $14 in the latest trading session, marking a +0.79% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 1.91%.
Heading into today, shares of the world's largest airline had lost 16.28% over the past month, lagging the Transportation sector's loss of 5.69% and the S&P 500's gain of 1.24% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.03, up 101.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.26 billion, up 37.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $53.7 billion. These totals would mark changes of +394% and +9.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.05% higher. American Airlines is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 5.63. This valuation marks a discount compared to its industry's average Forward P/E of 11.28.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.