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American Airlines (AAL) Laps the Stock Market: Here's Why
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In the latest trading session, American Airlines (AAL - Free Report) closed at $12.50, marking a +2.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.66%.
Shares of the world's largest airline witnessed a loss of 1.77% over the previous month, trailing the performance of the Transportation sector with its gain of 0.73%, and the S&P 500's gain of 1.02%.
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 October 23, 2025. In that report, analysts expect American Airlines to post earnings of -$0.27 per share. This would mark a year-over-year decline of 190%. Meanwhile, our latest consensus estimate is calling for revenue of $13.63 billion, down 0.13% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.35 per share and revenue of $54.49 billion, which would represent changes of -82.14% and +0.52%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 20.76% lower. American Airlines currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 34.83. This valuation marks a premium compared to its industry average Forward P/E of 10.17.
It's also important to note that AAL currently trades at a PEG ratio of 3.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.78.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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American Airlines (AAL) Laps the Stock Market: Here's Why
In the latest trading session, American Airlines (AAL - Free Report) closed at $12.50, marking a +2.54% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.66%.
Shares of the world's largest airline witnessed a loss of 1.77% over the previous month, trailing the performance of the Transportation sector with its gain of 0.73%, and the S&P 500's gain of 1.02%.
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 October 23, 2025. In that report, analysts expect American Airlines to post earnings of -$0.27 per share. This would mark a year-over-year decline of 190%. Meanwhile, our latest consensus estimate is calling for revenue of $13.63 billion, down 0.13% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.35 per share and revenue of $54.49 billion, which would represent changes of -82.14% and +0.52%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 20.76% lower. American Airlines currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 34.83. This valuation marks a premium compared to its industry average Forward P/E of 10.17.
It's also important to note that AAL currently trades at a PEG ratio of 3.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.78.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.