American Airlines (AAL) closed at $11.43 in the latest trading session, marking a +1.42% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.39%.
The world's largest airline's shares have seen a decrease of 16.15% over the last month, not keeping up with the Transportation sector's loss of 0.58% and the S&P 500's gain of 3.94%.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. On that day, American Airlines is projected to report earnings of -$0.24 per share, which would represent a year-over-year decline of 180%. Meanwhile, our latest consensus estimate is calling for revenue of $13.65 billion, up 0.01% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.45 per share and revenue of $54.52 billion, indicating changes of -77.04% and +0.57%, respectively, compared to the previous 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 business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 7.38% higher. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, American Airlines is presently being traded at a Forward P/E ratio of 24.89. This expresses a premium compared to the average Forward P/E of 10.13 of its industry.
It's also important to note that AAL currently trades at a PEG ratio of 2.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry had an average PEG ratio of 0.8 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 Group Inc. (AAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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