American Airlines (AAL) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, American Airlines (AAL) closed at $18.27, marking a -0.11% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.Shares of the world's largest airline have appreciated by 9.92% over the course of the past month, outperforming the Transportation sector's loss of 0.71% and the S&P 500's loss of 2.14%.The upcoming earnings release of American Airlines will be of great interest to investors. The company's earnings report is expected on January 23, 2025. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 120.69% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $13.42 billion, reflecting a 2.72% rise from the equivalent quarter last year.It's also important for investors to be aware of any recent modifications to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 16.02% upward. American Airlines is currently sporting a Zacks Rank of #1 (Strong Buy).Looking at its valuation, American Airlines is holding a Forward P/E ratio of 7.31. This signifies a discount in comparison to the average Forward P/E of 9.14 for its industry.We can also see that AAL currently has a PEG ratio of 0.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.72 at the close of the market yesterday.The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.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.To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See 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