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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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American Airlines (AAL - Free Report) ended the recent trading session at $12.76, demonstrating a -1.47% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.37%.
Shares of the world's largest airline witnessed a gain of 11.83% over the previous month, beating the performance of the Transportation sector with its gain of 1.99%, and the S&P 500's gain of 1.85%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.26, marking a 186.67% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.62 billion, reflecting a 0.23% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.42 per share and revenue of $54.47 billion, which would represent changes of -78.57% and +0.48%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 11.91% fall in the Zacks Consensus EPS estimate. Currently, American Airlines is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 30.71. This denotes a premium relative to the industry average Forward P/E of 10.52.
It is also worth noting that AAL currently has a PEG ratio of 3.34. 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 currently had an average PEG ratio of 0.82 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
American Airlines (AAL - Free Report) ended the recent trading session at $12.76, demonstrating a -1.47% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.37%.
Shares of the world's largest airline witnessed a gain of 11.83% over the previous month, beating the performance of the Transportation sector with its gain of 1.99%, and the S&P 500's gain of 1.85%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.26, marking a 186.67% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.62 billion, reflecting a 0.23% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.42 per share and revenue of $54.47 billion, which would represent changes of -78.57% and +0.48%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 11.91% fall in the Zacks Consensus EPS estimate. Currently, American Airlines is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 30.71. This denotes a premium relative to the industry average Forward P/E of 10.52.
It is also worth noting that AAL currently has a PEG ratio of 3.34. 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 currently had an average PEG ratio of 0.82 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.