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American Airlines (AAL) Stock Slides as Market Rises: Facts to Know Before You Trade

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American Airlines (AAL - Free Report) closed at $13.76 in the latest trading session, marking a -0.51% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.

The world's largest airline's shares have seen a decrease of 7.18% over the last month, not keeping up with the Transportation sector's gain of 0.33% and the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.28, signifying a 660% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.57 billion, up 3.14% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.56 per share and revenue of $55.2 billion, indicating changes of -3.4% and +4.57%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% increase. American Airlines is currently a Zacks Rank #3 (Hold).

In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 5.39. This expresses a discount compared to the average Forward P/E of 8.83 of its industry.

Investors should also note that AAL has a PEG ratio of 0.11 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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 group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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