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American Airlines (AAL) Stock Sinks As Market Gains: Here's Why
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American Airlines (AAL - Free Report) closed at $10.84 in the latest trading session, marking a -2.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
The stock of world's largest airline has fallen by 10.67% in the past month, lagging the Transportation sector's loss of 7.8% and the S&P 500's loss of 4.28%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. In that report, analysts expect American Airlines to post earnings of -$0.33 per share. This would mark year-over-year growth of 44.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.68 billion, up 8.96% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $59.63 billion, which would represent changes of +305.56% and +9.15%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 32.7% downward. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).
With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 7.6. For comparison, its industry has an average Forward P/E of 9.08, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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 Sinks As Market Gains: Here's Why
American Airlines (AAL - Free Report) closed at $10.84 in the latest trading session, marking a -2.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
The stock of world's largest airline has fallen by 10.67% in the past month, lagging the Transportation sector's loss of 7.8% and the S&P 500's loss of 4.28%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. In that report, analysts expect American Airlines to post earnings of -$0.33 per share. This would mark year-over-year growth of 44.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.68 billion, up 8.96% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $59.63 billion, which would represent changes of +305.56% and +9.15%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 32.7% downward. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).
With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 7.6. For comparison, its industry has an average Forward P/E of 9.08, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.