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American Airlines (AAL) Gains As Market Dips: What You Should Know

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In the latest close session, American Airlines (AAL - Free Report) was up +1.25% at $15.33. The stock's change was more than the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.24%.

Prior to today's trading, shares of the world's largest airline had gained 8.45% outpaced the Transportation sector's gain of 4.84% and the S&P 500's gain of 0.94%.

Market participants will be closely following the financial results of American Airlines in its upcoming release. The company's upcoming EPS is projected at $0.38, signifying a 55.81% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.12 billion, reflecting a 3.35% rise from the equivalent quarter last year.

AAL's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $54.71 billion. These results would represent year-over-year changes of -71.43% and +0.92%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 presently features a Zacks Rank of #3 (Hold).

Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 27.19. This represents a premium compared to its industry average Forward P/E of 11.93.

One should further note that AAL currently holds a PEG ratio of 2.13. 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. The Transportation - Airline was holding an average PEG ratio of 0.84 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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