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American Airlines (AAL) Gains But Lags Market: What You Should Know
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American Airlines (AAL - Free Report) closed at $33.95 in the latest trading session, marking a +1.09% move from the prior day. This change lagged the S&P 500's 1.32% gain on the day. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.74%.
Coming into today, shares of the world's largest airline had gained 5.3% in the past month. In that same time, the Transportation sector gained 3.9%, while the S&P 500 gained 4.16%.
AAL will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $1.03, up 8.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.01 billion, up 3.84% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 2.32% higher. AAL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, AAL is currently trading at a Forward P/E ratio of 5.88. This represents a discount compared to its industry's average Forward P/E of 9.52.
Investors should also note that AAL has a PEG ratio of 4.49 right now. 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 0.51 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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American Airlines (AAL) Gains But Lags Market: What You Should Know
American Airlines (AAL - Free Report) closed at $33.95 in the latest trading session, marking a +1.09% move from the prior day. This change lagged the S&P 500's 1.32% gain on the day. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.74%.
Coming into today, shares of the world's largest airline had gained 5.3% in the past month. In that same time, the Transportation sector gained 3.9%, while the S&P 500 gained 4.16%.
AAL will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2019. The company is expected to report EPS of $1.03, up 8.42% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.01 billion, up 3.84% from the year-ago period.
Investors should also note any recent changes to analyst estimates for AAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 2.32% higher. AAL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, AAL is currently trading at a Forward P/E ratio of 5.88. This represents a discount compared to its industry's average Forward P/E of 9.52.
Investors should also note that AAL has a PEG ratio of 4.49 right now. 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 0.51 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.