Here's Why American Airlines (AAL) Gained But Lagged the Market Today

The most recent trading session ended with American Airlines (AAL) standing at $17.40, reflecting a +0.12% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.81%.The world's largest airline's stock has climbed by 27.61% in the past month, exceeding the Transportation sector's gain of 1.65% and the S&P 500's gain of 5.22%.Market participants will be closely following the financial results of American Airlines in its upcoming release. On that day, American Airlines is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 41.38%. Meanwhile, our latest consensus estimate is calling for revenue of $13.21 billion, up 1.14% from the prior-year quarter.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.49 per share and a revenue of $53.74 billion, representing changes of -43.77% and +1.8%, respectively, from the prior year.Investors might also notice recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. American Airlines presently features a Zacks Rank of #3 (Hold).From a valuation perspective, American Airlines is currently exchanging hands at a Forward P/E ratio of 11.63. This represents a premium compared to its industry's average Forward P/E of 11.24.It's also important to note that AAL currently trades at a PEG ratio of 0.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 1.23.The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 25, 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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