American Airlines (AAL – Free Report) closed the most recent trading day at $13.03, moving -1.66% from the previous trading session. This change lagged the S&P 500’s 0.55% gain on the day. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.7%.
The world’s largest airline’s stock has dropped by 22.33% in the past month, falling short of the Transportation sector’s loss of 5.34% and the S&P 500’s loss of 5.56%.
The upcoming earnings release of American Airlines will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.23, marking a 32.35% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.12 billion, indicating a 4.41% upward movement from the same quarter last year.
AAL’s full-year Zacks Consensus Estimates are calling for earnings of $2.42 per share and revenue of $57.56 billion. These results would represent year-over-year changes of +23.47% and +6.19%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.34% upward. American Airlines is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, American Airlines is presently trading at a Forward P/E ratio of 5.48. This signifies a discount in comparison to the average Forward P/E of 8.58 for its industry.
Meanwhile, AAL’s PEG ratio is currently 0.24. 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 0.68 as trading concluded yesterday.
The Transportation – Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 31, finds itself in the top 13% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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