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American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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American Airlines (AAL - Free Report) closed the most recent trading day at $14.65, moving -0.2% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.41%.

The world's largest airline's shares have seen a decrease of 1.34% over the last month, not keeping up with the Transportation sector's gain of 1.84% and the S&P 500's gain of 2.7%.

Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. The company is expected to report EPS of -$0.24, down 580% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.53 billion, up 2.81% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.54 per share and a revenue of $55 billion, signifying shifts of -4.15% and +4.19%, respectively, from the last year.

Any recent changes to analyst estimates for American Airlines should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.44% decrease. American Airlines is currently a Zacks Rank #3 (Hold).

With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 5.77. This represents a discount compared to its industry's average Forward P/E of 8.55.

Investors should also note that AAL has a PEG ratio of 0.12 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.59.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.


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