American Airlines (AAL) Falls More Steeply Than Broader Market: What Investors Need to Know

American Airlines (AAL) ended the recent trading session at $17.24, demonstrating a -1.93% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.54% for the day. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 0.66%.The world's largest airline's stock has climbed by 25.48% in the past month, exceeding the Transportation sector's loss of 3.56% and the S&P 500's gain of 1.5%.The investment community will be closely monitoring the performance of American Airlines in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.49, reflecting a 68.97% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $13.3 billion, indicating a 1.79% growth compared to the corresponding quarter of the prior year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $53.86 billion. These totals would mark changes of -38.87% and +2.02%, respectively, from last year.It's also important for investors to be aware of any recent modifications to analyst estimates for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.93% higher within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.Looking at its valuation, American Airlines is holding a Forward P/E ratio of 10.82. For comparison, its industry has an average Forward P/E of 10.63, which means American Airlines is trading at a premium to the group.One should further note that AAL currently holds a PEG ratio of 0.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Airline stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks