In the latest trading session, American Airlines (AAL - Free Report) closed at $16.70, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 1.43%.
AAL will be looking to display strength as it nears its next earnings release. On that day, AAL is projected to report earnings of -$7.39 per share, which would represent a year-over-year decline of 506.04%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, down 89.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$15.50 per share and revenue of $20.94 billion. These totals would mark changes of -416.33% and -54.26%, respectively, from last year.
Any recent changes to analyst estimates for AAL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% lower. AAL currently has a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.