American Airlines (AAL) closed at $13.42 in the latest trading session, marking a -4.76% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
The stock of world's largest airline has risen by 11.03% in the past month, leading the Transportation sector's gain of 3.78% and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.02, marking a 102.11% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.68 billion, up 15.88% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$0.07 per share and revenue of $61.94 billion. These results would represent year-over-year changes of -119.44% and +13.38%, respectively.
Investors should also note any recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 30% higher. Currently, American Airlines is carrying a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 16% of over 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).