You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.
This story originally appeared on Zacks
American Airlines (AAL) closed at $17.89 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500’s 2.07% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.49%.
– Zacks
Prior to today’s trading, shares of the world’s largest airline had lost 19.42% over the past month. This has lagged the Transportation sector’s loss of 3.19% and the S&P 500’s loss of 2.08% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.72, up 55.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.09 billion, up 125.79% from the year-ago period.
AAL’s full-year Zacks Consensus Estimates are calling for earnings of -$8.65 per share and revenue of $29.55 billion. These results would represent year-over-year changes of +56% and +70.46%, respectively.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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…