American Airlines’(AAL – Free Report) commitment to sustainability is commendable. The company’s customer-friendly initiatives are also encouraging. Due to these tailwinds, AAL shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
AAL’s Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 9.01% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 17.04% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Robust Price Performance: A look at the company’s price trend reveals that its shares have risen 18.1% over the past six months, surpassing the Zacks Transportation – Airline industry’s 23.3% growth.
Positive Earnings Surprise History: American Airlines has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 37.1%.
Solid Zacks Rank: AAL currently carries a Zacks Rank #2 (Buy).
Bullish Industry Rank: The industry to which AAL belongs currently has a Zacks Industry Rank of 35 (out of 246). Such a favorable rank places it in the top 14% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Growth Factors: American Airlines’ proactive approach to boosting customer loyalty has resulted in the extension of its 37-year partnership with Citi (C – Free Report) for an additional decade. Beginning in 2026, Citi will become the exclusive issuer of the AAdvantage co-branded credit card portfolio in the United States, following its acquisition of Barclays’ American Airlines card portfolio. This transition will not impact the benefits for existing cardholders. The enhanced collaboration aims to offer increased value and rewards for both AAdvantage and Citi-branded card members. Moreover, Citi will manage all acquisition channels, including inflight and at airports, to drive growth and further solidify customer loyalty for both brands.
American Airlines demonstrates a strong commitment to sustainability through transparent management and reporting practices. The company has set ambitious goals, aiming to reduce emissions intensity by 45% by 2035 and achieve net-zero emissions by 2050. Its strategy prioritizes the use of fuel-efficient aircraft and low-carbon fuels while actively collaborating with stakeholders to drive innovative decarbonization solutions. This forward-thinking approach solidifies American Airlines as a leader in sustainable aviation.
Other Airline Stocks to Consider
Investors may also consider SkyWest (SKYW – Free Report) and United Airlines (UAL – Free Report) .
SkyWest currently sports at Zacks Rank #1 (Strong Buy)
SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 31.9% over the past year.
United Airlines currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
UAL has an expected earnings growth rate of 22.1% for the current year.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average surprise is 22.9%. Shares of UAL have risen 99.3% in the past year.
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