American Airlines (AAL) Gains But Lags Market: What You Should Know

In the latest market close, American Airlines (AAL) reached $10.87, with a +1.87% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 2.13%. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.61%.The world's largest airline's shares have seen a decrease of 32.21% over the last month, not keeping up with the Transportation sector's loss of 10.48% and the S&P 500's loss of 9.57%.The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company's upcoming EPS is projected at -$0.37, signifying an 8.82% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.58 billion, indicating a 0.04% increase compared to the same quarter of the previous year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.24 per share and revenue of $57.29 billion, indicating changes of +14.29% and +5.67%, respectively, compared to the previous year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.9% downward. American Airlines currently has a Zacks Rank of #3 (Hold).From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 4.75. For comparison, its industry has an average Forward P/E of 8.73, which means American Airlines is trading at a discount to the group.One should further note that AAL currently holds a PEG ratio of 0.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.63.The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks