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Here's Why American Airlines (AAL) Fell More Than Broader Market
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In the latest trading session, American Airlines (AAL - Free Report) closed at $10.30, marking a -3.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.67%. On the other hand, the Dow registered a loss of 1.73%, and the technology-centric Nasdaq decreased by 2.15%.
The stock of world's largest airline has fallen by 23.17% in the past month, lagging the Transportation sector's loss of 10.14% and the S&P 500's loss of 6.15%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.3, indicating a 49.15% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $13.66 billion, reflecting a 8.8% rise from the equivalent quarter last year.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $1.69 per share and revenue of $59.73 billion. These results would represent year-over-year changes of +369.44% and +9.32%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 22.29% decrease. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 6.33. For comparison, its industry has an average Forward P/E of 8.59, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 25% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why American Airlines (AAL) Fell More Than Broader Market
In the latest trading session, American Airlines (AAL - Free Report) closed at $10.30, marking a -3.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.67%. On the other hand, the Dow registered a loss of 1.73%, and the technology-centric Nasdaq decreased by 2.15%.
The stock of world's largest airline has fallen by 23.17% in the past month, lagging the Transportation sector's loss of 10.14% and the S&P 500's loss of 6.15%.
Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.3, indicating a 49.15% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $13.66 billion, reflecting a 8.8% rise from the equivalent quarter last year.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $1.69 per share and revenue of $59.73 billion. These results would represent year-over-year changes of +369.44% and +9.32%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 22.29% decrease. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, American Airlines is at present trading with a Forward P/E ratio of 6.33. For comparison, its industry has an average Forward P/E of 8.59, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 25% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.