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American Airlines (AAL) Suffers a Larger Drop Than the General Market: Key Insights
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American Airlines (AAL - Free Report) closed at $10.30 in the latest trading session, marking a -2.37% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.93%.
The stock of world's largest airline has fallen by 24.91% in the past month, lagging the Transportation sector's loss of 8.64% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is expected to report EPS of -$0.32, up 45.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.62 billion, up 8.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.87 per share and a revenue of $59.62 billion, signifying shifts of +419.44% and +9.13%, respectively, from the last 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.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.74% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is presently being traded at a Forward P/E ratio of 5.63. This expresses a discount compared to the average Forward P/E of 8.03 of its industry.
Meanwhile, AAL's PEG ratio is currently 0.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.45.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 39, this industry ranks in the top 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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American Airlines (AAL) Suffers a Larger Drop Than the General Market: Key Insights
American Airlines (AAL - Free Report) closed at $10.30 in the latest trading session, marking a -2.37% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.93%.
The stock of world's largest airline has fallen by 24.91% in the past month, lagging the Transportation sector's loss of 8.64% and the S&P 500's loss of 2.25%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is expected to report EPS of -$0.32, up 45.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.62 billion, up 8.5% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.87 per share and a revenue of $59.62 billion, signifying shifts of +419.44% and +9.13%, respectively, from the last 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.
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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.74% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is presently being traded at a Forward P/E ratio of 5.63. This expresses a discount compared to the average Forward P/E of 8.03 of its industry.
Meanwhile, AAL's PEG ratio is currently 0.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.45.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 39, this industry ranks in the top 16% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.