In the latest close session, American Airlines (AAL) was up +2.67% at $11.52. This change outpaced the S&P 500's 0.11% loss on the day. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%.
The world's largest airline's stock has dropped by 1.41% in the past month, falling short of the Transportation sector's gain of 2.26% and the S&P 500's gain of 5.17%.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.77, showcasing a 29.36% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.29 billion, down 0.29% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.81 per share and a revenue of $54.61 billion, indicating changes of -58.67% and +0.74%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.55% higher. Right now, American Airlines possesses a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 13.84. This valuation marks a premium compared to its industry average Forward P/E of 9.79.
It is also worth noting that AAL currently has a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Airline industry currently had an average PEG ratio of 0.93 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
