American Airlines (AAL - Free Report) closed at $38.11 in the latest trading session, marking a +0.87% move from the prior day. This change outpaced the S&P 500's 0.76% loss on the day. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq lost 0.9%.
Prior to today's trading, shares of the world's largest airline had gained 13.52% over the past month. This has outpaced the Transportation sector's loss of 0.39% and the S&P 500's loss of 1.41% in that time.
Investors will be hoping for strength from AAL as it approaches its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $0.96, up 1.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.08 billion, up 4.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.41 per share and revenue of $44.66 billion. These totals would mark changes of -9.63% and +5.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 4.63% higher within the past month. AAL is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, AAL is holding a Forward P/E ratio of 8.57. This valuation marks a discount compared to its industry's average Forward P/E of 12.81.
It is also worth noting that AAL currently has a PEG ratio of 1.13. 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. The Transportation - Airline was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.