American Airlines (AAL) Exceeds Market Returns: Some Facts to Consider

Company Performance - American Airlines (AAL) closed at $11.43, reflecting a +1.42% change from the previous day, outperforming the S&P 500's gain of 0.06% [1] - Over the last month, AAL shares decreased by 16.15%, underperforming the Transportation sector's loss of 0.58% and the S&P 500's gain of 3.94% [1] Earnings Forecast - American Airlines is projected to report earnings of -$0.24 per share, indicating a year-over-year decline of 180% [2] - Revenue is estimated at $13.65 billion, showing a slight increase of 0.01% from the prior-year quarter [2] Annual Estimates - For the entire year, earnings are forecasted at $0.45 per share, a decrease of 77.04%, with revenue expected to be $54.52 billion, an increase of 0.57% compared to the previous year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates are linked to stock price performance, with positive revisions indicating a favorable outlook on business health and profitability [4][3] - The Zacks Rank system, which incorporates estimate changes, currently ranks American Airlines at 3 (Hold) [5] Valuation Metrics - American Airlines has a Forward P/E ratio of 24.89, which is a premium compared to the industry average of 10.13 [6] - The company has a PEG ratio of 2.71, while the Transportation - Airline industry average PEG ratio is 0.8 [6] Industry Context - The Transportation - Airline industry holds a Zacks Industry Rank of 147, placing it in the bottom 41% of over 250 industries [7] - Stronger industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]