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American Airlines (AAL) Soars 9.2%: Is Further Upside Left in the Stock?

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American Airlines (AAL - Free Report) shares rallied 9.2% in the last trading session to close at $14.65. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.6% gain over the past four weeks.

American Airlines shares were lifted by President Trump's decision to call off planned military strikes against Iran. In fact, AAL shares have performed very well over a month, gaining more than 15% in the time period. The carrier expects record travel during the ongoing summer season (May 21-Sept. 8, 2026).  During the period, the airline expects to fly a record 75 million passengers across 750,000 flights. 

This world's largest airline is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -93.7%. Revenues are expected to be $16.68 billion, up 15.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For American Airlines, the consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

American Airlines is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, Delta Air Lines (DAL - Free Report) , finished the last trading session 7% higher at $81.83. DAL has returned 7.6% over the past month.

Delta's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.49. Compared to the company's year-ago EPS, this represents a change of -29.1%. Delta currently boasts a Zacks Rank of #3 (Hold).

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