American Airlines (AAL) Stock Decline: What Investors Need to Know

In the latest trading session, American Airlines (AAL) closed at $10.56, marking a -3.12% decline from the previous day. This change lagged behind the S&P 500's 0.84% loss on the day, with the Dow experiencing a drop of 0.7% and the technology-dominated Nasdaq seeing a decrease of 0.91%. Prior to today's trading, shares of the world's largest airline had lost 8.09%, which was narrower than the Transportation sector's loss of 0% and lagged the S&P 500's gain of 1.44%. Market participants will be closely following the financial results of American Airlines in its upcoming release, which is projected to report earnings of $0.77 per share, representing a year-over-year decline of 29.36%. The most recent consensus estimate anticipates revenue of $14.29 billion, indicating a 0.29% downward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.81 per share and a revenue of $54.61 billion, representing changes of -58.67% and +0.74%, respectively, from the prior year. Any recent changes to analyst estimates for American Airlines should be noted by investors as they signify the changing landscape of near-term business trends. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged, and American Airlines is holding a Zacks Rank of #5 (Strong Sell) right now. With respect to valuation, American Airlines is currently being traded at a Forward P/E ratio of 13.52, which marks a premium compared to its industry average Forward P/E of 9.31. Additionally, AAL has a PEG ratio of 1.23, which is similar to the widely-known P/E ratio but also takes into account the company's expected earnings growth rate. The average PEG ratio for the Transportation - Airline industry stood at 0.88 at the close of the market yesterday. The Transportation - Airline industry is part of the Transportation sector and has a Zacks Industry Rank of 47, putting it in the top 20% of all 250+ industries. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com and download the latest recommendations from Zacks Investment Research, including their 7 Best Stocks for the Next 30 Days report.