American Airlines (AAL) Outperforms Broader Market: What You Need to Know

American Airlines (AAL) closed the most recent trading day at $12.45, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.74%. The world's largest airline's shares have seen an increase of 15.97% over the last month, surpassing the Transportation sector's gain of 2.66% and the S&P 500's gain of 4.2%.The upcoming earnings release of American Airlines will be of great interest to investors. The company's earnings report is expected on July 24, 2025. The company is forecasted to report an EPS of $0.79, showcasing a 27.52% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.29 billion, down 0.32% from the prior-year quarter. For the full year, the Zacks Consensus Estimates are projecting earnings of $0.73 per share and revenue of $54.3 billion, which would represent changes of -62.76% and +0.17%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.93% lower within the past month. Currently, American Airlines is carrying a Zacks Rank of #3 (Hold). In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 16.89. This valuation marks a premium compared to its industry average Forward P/E of 10.09. We can also see that AAL currently has a PEG ratio of 1.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAL's industry had an average PEG ratio of 0.88 as of yesterday's close. The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 38% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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 Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks