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American Airlines (AAL) Stock Slides as Market Rises: Facts to Know Before You Trade
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American Airlines (AAL - Free Report) ended the recent trading session at $15.60, demonstrating a -4.06% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.46%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.57%.
Prior to today's trading, shares of the world's largest airline had gained 24.12% outpaced the Transportation sector's gain of 9.63% and the S&P 500's gain of 4.22%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. In that report, analysts expect American Airlines to post earnings of $0.38 per share. This would mark a year-over-year decline of 55.81%. Alongside, our most recent consensus estimate is anticipating revenue of $14.12 billion, indicating a 3.35% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.56 per share and a revenue of $54.71 billion, demonstrating changes of -71.43% and +0.92%, respectively, from the preceding year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 28.83% downward. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, American Airlines is presently trading at a Forward P/E ratio of 29.2. Its industry sports an average Forward P/E of 12.37, so one might conclude that American Airlines is trading at a premium comparatively.
It's also important to note that AAL currently trades at a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 38% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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American Airlines (AAL) Stock Slides as Market Rises: Facts to Know Before You Trade
American Airlines (AAL - Free Report) ended the recent trading session at $15.60, demonstrating a -4.06% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.46%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.57%.
Prior to today's trading, shares of the world's largest airline had gained 24.12% outpaced the Transportation sector's gain of 9.63% and the S&P 500's gain of 4.22%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. In that report, analysts expect American Airlines to post earnings of $0.38 per share. This would mark a year-over-year decline of 55.81%. Alongside, our most recent consensus estimate is anticipating revenue of $14.12 billion, indicating a 3.35% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.56 per share and a revenue of $54.71 billion, demonstrating changes of -71.43% and +0.92%, respectively, from the preceding year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 28.83% downward. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, American Airlines is presently trading at a Forward P/E ratio of 29.2. Its industry sports an average Forward P/E of 12.37, so one might conclude that American Airlines is trading at a premium comparatively.
It's also important to note that AAL currently trades at a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.87 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 38% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.