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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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The most recent trading session ended with American Airlines (AAL - Free Report) standing at $14.16, reflecting a -1.67% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.
The the stock of world's largest airline has fallen by 1.84% in the past month, lagging the Transportation sector's gain of 0.6% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is predicted to post an EPS of -$0.28, indicating a 660% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.56 billion, up 3.05% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.56 per share and revenue of $55.2 billion. These totals would mark changes of -3.4% and +4.57%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 1.11% decrease. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.61. Its industry sports an average Forward P/E of 9.08, so one might conclude that American Airlines is trading at a discount comparatively.
One should further note that AAL currently holds a PEG ratio of 0.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.75.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
The most recent trading session ended with American Airlines (AAL - Free Report) standing at $14.16, reflecting a -1.67% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.11% gain on the day. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.
The the stock of world's largest airline has fallen by 1.84% in the past month, lagging the Transportation sector's gain of 0.6% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is predicted to post an EPS of -$0.28, indicating a 660% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.56 billion, up 3.05% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.56 per share and revenue of $55.2 billion. These totals would mark changes of -3.4% and +4.57%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 1.11% decrease. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.61. Its industry sports an average Forward P/E of 9.08, so one might conclude that American Airlines is trading at a discount comparatively.
One should further note that AAL currently holds a PEG ratio of 0.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.75.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.