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American Airlines (AAL) Rises As Market Takes a Dip: Key Facts

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American Airlines (AAL - Free Report) closed the latest trading day at $14.02, indicating a +0.94% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.

Shares of the world's largest airline have depreciated by 4.67% over the course of the past month, outperforming the Transportation sector's loss of 5.07% and lagging the S&P 500's loss of 1.66%.

Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. In that report, analysts expect American Airlines to post earnings of -$0.28 per share. This would mark a year-over-year decline of 660%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.59 billion, up 3.29% from the year-ago period.

AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.45 per share and revenue of $55.43 billion. These results would represent year-over-year changes of -7.55% and +5.01%, respectively.

It is also important to note the recent changes to analyst estimates 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 a 3.06% fall in the Zacks Consensus EPS estimate. At present, American Airlines boasts a Zacks Rank of #3 (Hold).

In terms of valuation, American Airlines is presently being traded at a Forward P/E ratio of 5.67. This signifies a discount in comparison to the average Forward P/E of 9.07 for its industry.

Also, we should mention that AAL has a PEG ratio of 0.11. 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. The Transportation - Airline industry had an average PEG ratio of 0.7 as trading concluded yesterday.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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