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American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, American Airlines (AAL - Free Report) closed at $11.06, marking a -6.59% move from the previous day. This move lagged the S&P 500's daily loss of 0.27%.
Coming into today, shares of the world's largest airline had lost 3.74% in the past month. In that same time, the Transportation sector gained 6.65%, while the S&P 500 gained 6.9%.
The upcoming earnings release of American Airlines will be of great interest to investors. The company is forecasted to report an EPS of $0.77, showcasing a 29.36% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.29 billion, down 0.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $54.61 billion, which would represent changes of -58.67% and +0.74%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.73% lower. American Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 14.68. Its industry sports an average Forward P/E of 9.47, so one might conclude that American Airlines is trading at a premium comparatively.
We can additionally observe that AAL currently boasts a PEG ratio of 1.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.92.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, American Airlines (AAL - Free Report) closed at $11.06, marking a -6.59% move from the previous day. This move lagged the S&P 500's daily loss of 0.27%.
Coming into today, shares of the world's largest airline had lost 3.74% in the past month. In that same time, the Transportation sector gained 6.65%, while the S&P 500 gained 6.9%.
The upcoming earnings release of American Airlines will be of great interest to investors. The company is forecasted to report an EPS of $0.77, showcasing a 29.36% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.29 billion, down 0.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.81 per share and revenue of $54.61 billion, which would represent changes of -58.67% and +0.74%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.73% lower. American Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 14.68. Its industry sports an average Forward P/E of 9.47, so one might conclude that American Airlines is trading at a premium comparatively.
We can additionally observe that AAL currently boasts a PEG ratio of 1.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.92.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.