We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
American Airlines (AAL - Free Report) closed at $13.72 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.39% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.
The world's largest airline's stock has climbed by 16.61% in the past month, exceeding the Transportation sector's gain of 7.8% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. On that day, American Airlines is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 99.15%. Our most recent consensus estimate is calling for quarterly revenue of $13.02 billion, down 1.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $52.76 billion, which would represent changes of +378% and +7.73%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 5.75. This signifies a discount in comparison to the average Forward P/E of 7.04 for its industry.
We can additionally observe that AAL currently boasts a PEG ratio of 0.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
American Airlines (AAL - Free Report) closed at $13.72 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.39% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.
The world's largest airline's stock has climbed by 16.61% in the past month, exceeding the Transportation sector's gain of 7.8% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. On that day, American Airlines is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 99.15%. Our most recent consensus estimate is calling for quarterly revenue of $13.02 billion, down 1.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $52.76 billion, which would represent changes of +378% and +7.73%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 5.75. This signifies a discount in comparison to the average Forward P/E of 7.04 for its industry.
We can additionally observe that AAL currently boasts a PEG ratio of 0.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.