American Airlines (AAL) ended the recent trading session at $11.06, demonstrating a -2.73% change from the preceding day's closing price. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The world's largest airline's shares have seen a decrease of 2.32% over the last month, not keeping up with the Transportation sector's gain of 2.86% and the S&P 500's gain of 5.05%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is expected to report EPS of $0.77, down 29.36% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14.29 billion, indicating a 0.29% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $54.61 billion. These totals would mark changes of -58.67% and +0.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for American Airlines. 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 14.1. This indicates a premium in contrast to its industry's Forward P/E of 9.59.
Investors should also note that AAL has a PEG ratio of 1.29 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.88.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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