American Airlines (AAL) shares ended the last trading session 22.6% higher at $11.12. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.9% loss over the past four weeks.

The stock gained following President Donald Trump's announcement that he would pause the "reciprocal" import taxes for 90 days. The President said he felt the pause was needed because "more than 75 countries" had contacted his administration to make trade deals. Airline stocks were recently crushed by economic uncertainties and the resultant reduction in consumer and corporate confidence. The uncertainty hurt domestic air travel demand.

This world's largest airline is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of -88.2%. Revenues are expected to be $12.56 billion, down 0.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For American Airlines, the consensus EPS estimate for the quarter has been revised 7.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

American Airlines is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, AZUL (AZUL), finished the last trading session 9.3% higher at $1.53. AZUL has returned -23.9% over the past month.

AZUL's consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $0.03. Compared to the company's year-ago EPS, this represents a change of +105.3%. AZUL currently boasts a Zacks Rank of #3 (Hold).

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American Airlines Group Inc. (AAL) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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