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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·2-min read

American Airlines (AAL) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.99%.

Heading into today, shares of the world's largest airline had gained 7.18% over the past month, outpacing the Transportation sector's loss of 2.37% and the S&P 500's gain of 0.42% in that time.

Investors will be hoping for strength from American Airlines as it approaches its next earnings release. On that day, American Airlines is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 69.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.65 billion, up 1.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $52.86 billion. These totals would mark changes of +428% and +7.94%, respectively, from last year.

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Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 4.27% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.61. This represents a discount compared to its industry's average Forward P/E of 10.07.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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American Airlines Group Inc. (AAL) : Free Stock Analysis Report

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Zacks Investment Research