In the most recent trading session, American Airlines (NASDAQ:AAL) concluded at $13.98, experiencing a slight decline of -0.14% compared to the previous day. This performance fell short of the S&P 500’s daily gain of 0.14%. Simultaneously, the Dow saw an increase of 0.22%, and the Nasdaq, known for its tech-heavy composition, rose by 0.09%.
Looking back over the past month, American Airlines, the world’s largest airline, faced a decline of 11.17% in its share price, trailing behind the Transportation sector’s 6.54% loss and the S&P 500’s 1.27% dip during the same period.
Investors are eagerly awaiting American Airlines’ next earnings report. Analysts anticipate the airline to report earnings of $0.75 per share in this upcoming release, marking an 8.7% year-over-year growth. The latest consensus estimate suggests quarterly revenue of $13.59 billion, reflecting a 0.93% increase from the corresponding period last year.
American Airlines’ full-year Zacks Consensus Estimates predict earnings of $3.09 per share and revenue of $53.11 billion. These figures would represent substantial year-over-year changes of +518% and +8.46%, respectively.
Investors should remain vigilant regarding any recent alterations in analyst forecasts for American Airlines, as they often reflect the latest short-term business trends. Such revisions can be indicative of the company’s near-term prospects.
Research indicates a direct correlation between estimate changes and short-term stock price movements. Over the past 30 days, Zacks consensus EPS projection has decreased by 8.31%, leading to American Airlines currently having Hold rating.
Valuation metrics are also essential for investors to consider. American Airlines presently boasts a Forward P/E ratio of 4.53, indicating a discounted valuation compared to the industry’s average Forward P/E of 8.43.
Furthermore, AAL has a PEG ratio of 0.08 at present, a metric that takes the company’s expected earnings growth rate into account alongside the P/E ratio. In comparison, Transportation – Airline stocks held an average PEG ratio of 0.34 based on yesterday’s closing prices.
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