The latest trading session saw American Airlines (AAL) ending at $9.46, denoting a -0.47% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 5.98%. On the other hand, the Dow registered a loss of 5.5%, and the technology-centric Nasdaq decreased by 5.82%.
The world's largest airline's stock has dropped by 28.26% in the past month, falling short of the Transportation sector's loss of 22.68% and the S&P 500's loss of 7.66%.
The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.62, showcasing an 82.35% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $12.56 billion, indicating a 0.1% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2 per share and a revenue of $56.53 billion, representing changes of +2.04% and +4.27%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.93% decrease. As of now, American Airlines holds a Zacks Rank of #3 (Hold).
With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 4.75. This represents a discount compared to its industry's average Forward P/E of 6.66.
We can also see that AAL currently has a PEG ratio of 0.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.55 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 140, placing it within the bottom 44% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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American Airlines Group Inc. (AAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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