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American Airlines (AAL) Dips More Than Broader Market: What You Should Know

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American Airlines (AAL - Free Report) closed at $12.22 in the latest trading session, marking a -5.56% move from the prior day. This change lagged the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.

Shares of the world's largest airline have appreciated by 18.72% over the course of the past month, outperforming the Transportation sector's gain of 3.6%, and the S&P 500's gain of 4.07%.

The upcoming earnings release of American Airlines will be of great interest to investors. The company's earnings report is expected on July 24, 2025. In that report, analysts expect American Airlines to post earnings of $0.78 per share. This would mark a year-over-year decline of 28.44%. At the same time, our most recent consensus estimate is projecting a revenue of $14.29 billion, reflecting a 0.32% fall from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.77 per share and revenue of $54.33 billion, indicating changes of -60.71% and +0.23%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 3.91% lower. At present, American Airlines boasts a Zacks Rank of #3 (Hold).

In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 16.7. This valuation marks a premium compared to its industry average Forward P/E of 10.64.

It's also important to note that AAL currently trades at a PEG ratio of 1.79. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.9 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 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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