American Airlines (AAL) Exceeds Market Returns: Some Facts to Consider

American Airlines (AAL) closed at $14.24 in the latest trading session, marking a +2.01% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.59%. Shares of the world's largest airline witnessed a gain of 4.65% over the previous month, beating the performance of the Transportation sector with its gain of 2.83%, and the S&P 500's loss of 0.23%.The upcoming earnings release of American Airlines will be of great interest to investors. It is anticipated that the company will report an EPS of $0.61, marking a 29.07% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.24 billion, indicating a 4.27% growth compared to the corresponding quarter of the prior year. AAL's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $54.82 billion. These results would represent year-over-year changes of -60.2% and +1.12%, respectively. Investors should also take note of any recent adjustments to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.13% lower. At present, American Airlines boasts a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 17.84 right now. This represents a premium compared to its industry average Forward P/E of 10.65. Meanwhile, AAL's PEG ratio is currently 1.88. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.73. The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. 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 a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.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