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

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American Airlines (AAL - Free Report) ended the recent trading session at $15.33, demonstrating a +2.47% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

Prior to today's trading, shares of the world's largest airline had gained 17.24% outpaced the Transportation sector's gain of 6.47% and the S&P 500's loss of 0.21%.

Market participants will be closely following the financial results of American Airlines in its upcoming release. The company is expected to report EPS of $0.44, down 48.84% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14.19 billion, indicating a 3.85% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.62 per share and a revenue of $54.77 billion, representing changes of -68.37% and +1.03%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for American Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 21.82% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, American Airlines is holding a Forward P/E ratio of 24.18. This valuation marks a premium compared to its industry average Forward P/E of 11.84.

It's also important to note that AAL currently trades at a PEG ratio of 2.55. 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 average PEG ratio for the Transportation - Airline industry stood at 0.8 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% 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.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.


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