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American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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American Airlines (AAL - Free Report) closed the most recent trading day at $11.79, moving -5.38% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
Shares of the world's largest airline have depreciated by 13.65% over the course of the past month, underperforming the Transportation sector's gain of 1.84%, and the S&P 500's loss of 0.15%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. On that day, American Airlines is projected to report earnings of -$0.28 per share, which would represent year-over-year growth of 52.54%. Meanwhile, our latest consensus estimate is calling for revenue of $13.62 billion, up 8.5% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $59.46 billion. These results would represent year-over-year changes of +505.56% and +8.84%, respectively.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
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 witnessed a 2.11% decrease. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.73. This denotes a discount relative to the industry average Forward P/E of 8.82.
Meanwhile, AAL's PEG ratio is currently 0.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAL's industry had an average PEG ratio of 0.51 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% 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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American Airlines (AAL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
American Airlines (AAL - Free Report) closed the most recent trading day at $11.79, moving -5.38% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. On the other hand, the Dow registered a loss of 1.61%, and the technology-centric Nasdaq decreased by 0.26%.
Shares of the world's largest airline have depreciated by 13.65% over the course of the past month, underperforming the Transportation sector's gain of 1.84%, and the S&P 500's loss of 0.15%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. On that day, American Airlines is projected to report earnings of -$0.28 per share, which would represent year-over-year growth of 52.54%. Meanwhile, our latest consensus estimate is calling for revenue of $13.62 billion, up 8.5% from the prior-year quarter.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $59.46 billion. These results would represent year-over-year changes of +505.56% and +8.84%, respectively.
It is also important to note the recent changes to analyst estimates for American Airlines. 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.
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 witnessed a 2.11% decrease. At present, American Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.73. This denotes a discount relative to the industry average Forward P/E of 8.82.
Meanwhile, AAL's PEG ratio is currently 0.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AAL's industry had an average PEG ratio of 0.51 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% 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.