The most recent trading session ended with American Airlines (AAL) standing at $9.67, reflecting a +1.68% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.81%. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.

The the stock of world's largest airline has fallen by 10.87% in the past month, leading the Transportation sector's loss of 11.49% and undershooting the S&P 500's loss of 6.14%.

Analysts and investors alike will be keeping a close eye on the performance of American Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on April 24, 2025. In that report, analysts expect American Airlines to post earnings of -$0.65 per share. This would mark a year-over-year decline of 91.18%. At the same time, our most recent consensus estimate is projecting a revenue of $12.52 billion, reflecting a 0.43% fall from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.45 per share and a revenue of $55.68 billion, signifying shifts of -26.02% and +2.71%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 37.58% lower within the past month. As of now, American Airlines holds a Zacks Rank of #4 (Sell).

In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 6.54. For comparison, its industry has an average Forward P/E of 7.37, which means American Airlines is trading at a discount to the group.

It is also worth noting that AAL currently has a PEG ratio of 0.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.68 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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

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