American Airlines (AAL) Laps the Stock Market: Here's Why

Company Performance - American Airlines (AAL) closed at $12.50, reflecting a +2.54% increase from the previous day, outperforming the S&P 500's gain of 0.4% [1] - Over the past month, AAL shares experienced a loss of 1.77%, underperforming the Transportation sector's gain of 0.73% and the S&P 500's gain of 1.02% [1] Upcoming Earnings - The earnings report for American Airlines is scheduled for October 23, 2025, with analysts expecting earnings of -$0.27 per share, indicating a year-over-year decline of 190% [2] - The consensus estimate for revenue is $13.63 billion, down 0.13% from the prior-year quarter [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $0.35 per share and revenue of $54.49 billion, representing changes of -82.14% and +0.52% respectively from the prior year [3] Analyst Estimates - Recent changes to analyst estimates for American Airlines reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4] - The Zacks Rank system, which considers estimate changes, provides a rating system that can help investors capitalize on stock price performance [5] Zacks Rank and Valuation - American Airlines currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having moved 20.76% lower over the last 30 days [6] - The company has a Forward P/E ratio of 34.83, which is a premium compared to the industry average Forward P/E of 10.17 [7] - AAL's PEG ratio stands at 3.94, while the Transportation - Airline industry has an average PEG ratio of 0.78 [8] Industry Context - The Transportation - Airline industry is ranked 172 in the Zacks Industry Rank, placing it in the bottom 31% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]