In the latest trading session, American Airlines (AAL) closed at $15.83, marking a +2.26% move from the previous day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.
The world's largest airline's stock has climbed by 4.52% in the past month, exceeding the Transportation sector's gain of 4.41% and the S&P 500's gain of 0.55%.
The upcoming earnings release of American Airlines will be of great interest to investors. On that day, American Airlines is projected to report earnings of $0.38 per share, which would represent a year-over-year decline of 55.81%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.12 billion, indicating a 3.35% increase compared to the same quarter of the previous year.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $0.56 per share and revenue of $54.71 billion. These results would represent year-over-year changes of -71.43% and 0%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.69% higher. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 7.81. This valuation marks a discount compared to its industry average Forward P/E of 9.3.
Also, we should mention that AAL has a PEG ratio of 0.61. 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 had an average PEG ratio of 0.6 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 103, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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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