What You Need to Know About the Falling American Airlines Stock (AAL) Despite Market Gains

American Airlines Stock AAL

American Airlines stock (AAL) ended the most recent trading day at $11.92, representing a -1% decrease from the previous day’s closing price. This move came in behind the daily increase of 2.59% seen by the S&P 500. The Dow gained 2.66% over this same time, while the tech-heavy Nasdaq gained 0.11%.

Shares of the largest airline in the world had dropped by 7.31 percent over the previous month before trading today. This decline was less severe than the loss that the Transportation sector experienced 13.13 percent and the loss that the S&P 500 experienced 9.22 percent over the same period.

As the time draws closer for American Airlines Group Inc (NASDAQ:AAL) to publish its most recent profits, Wall Street will watch the company closely for any signs of optimism. On that day, it is anticipated that American Airlines would post earnings of $0.77 per share, representing an increase of 177.78% compared to the previous year’s results. Meanwhile, our most recent average estimate calls for sales of $13.35 billion, representing a 48.81% increase over the same period in the preceding year.

American Airlines Stock Price Analysis

When looking at the whole year, our Zacks Consensus Estimates reveal that industry experts anticipate earnings of -$0.83 per share and sales of $48.18 billion. These sums would represent changes of +90.1% and +61.25%, respectively, from the previous year’s totals.

Investors should also be aware of recent changes to the analyst consensus about American Airlines’s (NASDAQ:AAL) performance. Recent changes are more likely to mirror the most recent near-term business developments. As a result, optimistic estimate revisions indicate the analysts’ favorable outlook on the company’s operations and profitability.

The Zacks Rank methodology, which has a track record of outperformance and ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven and independently audited track record, with #1 stocks returning an average of +25% annually since 1988. Over the last month, the Zacks Consensus EPS estimate has decreased by 1.22 percent. The current Zacks Rank for American Airlines is a very respectable #4. (Sell).

The transportation sector also includes the airline industry as one of its subsectors. The Zacks Industry Rank for this category is 182, which places it in the worst 28% of all of the more than 250 different industries.

The Zacks Industry Rank ranks industries based on the average Zacks Rank of the individual firms that make up each category. The rankings range from best to worst based on this measure. According to the research findings, the industries classified in the top 50% do much better than those rated in the bottom 50% by a margin of 2 to 1.


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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.