American Airlines (AAL) ended the recent trading session at $17.35, demonstrating a +0.58% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow saw an upswing of 0.91%, while the tech-heavy Nasdaq appreciated by 1.35%.
The the stock of world's largest airline has risen by 15.62% in the past month, leading the Transportation sector's loss of 6.52% and the S&P 500's gain of 0.22%.
The upcoming earnings release of American Airlines will be of great interest to investors. The company's upcoming EPS is projected at $0.57, signifying a 96.55% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.34 billion, showing a 2.1% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.65 per share and a revenue of $53.89 billion, representing changes of -37.74% and +2.08%, respectively, from the prior year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.57% higher. American Airlines currently has a Zacks Rank of #3 (Hold).
With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 10.44. This indicates a premium in contrast to its industry's Forward P/E of 10.28.
We can also see that AAL currently has a PEG ratio of 0.28. 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. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 1.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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