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American Airlines (AAL) Stock Sinks As Market Gains: Here's Why
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American Airlines (AAL - Free Report) ended the recent trading session at $13.99, demonstrating a -0.85% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the world's largest airline had gained 15.94% over the past month. This has outpaced the Transportation sector's gain of 8.25% and the S&P 500's gain of 4.89% in that time.
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 $0.04 per share, which would represent a year-over-year decline of 96.58%. Our most recent consensus estimate is calling for quarterly revenue of $13.03 billion, down 1.24% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.41 per share and a revenue of $52.74 billion, indicating changes of +382% and +7.7%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% increase. American Airlines presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 5.86. This expresses a discount compared to the average Forward P/E of 7.88 of its industry.
It's also important to note that AAL currently trades at a PEG ratio of 0.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AAL's industry had an average PEG ratio of 0.36 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Airlines (AAL) Stock Sinks As Market Gains: Here's Why
American Airlines (AAL - Free Report) ended the recent trading session at $13.99, demonstrating a -0.85% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.16%.
Prior to today's trading, shares of the world's largest airline had gained 15.94% over the past month. This has outpaced the Transportation sector's gain of 8.25% and the S&P 500's gain of 4.89% in that time.
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 $0.04 per share, which would represent a year-over-year decline of 96.58%. Our most recent consensus estimate is calling for quarterly revenue of $13.03 billion, down 1.24% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.41 per share and a revenue of $52.74 billion, indicating changes of +382% and +7.7%, respectively, from the former 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.62% increase. American Airlines presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 5.86. This expresses a discount compared to the average Forward P/E of 7.88 of its industry.
It's also important to note that AAL currently trades at a PEG ratio of 0.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AAL's industry had an average PEG ratio of 0.36 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 198, placing it within the bottom 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.