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American Airlines (AAL) closed the most recent trading day at $11.28, down 1.83% from the previous trading session. The stock lagged the S&P 500, which gained 0.27% for the day. Meanwhile, the Dow lost 0.31% and the Nasdaq, a tech-heavy index, gained 0.88%.

Shares of the world’s largest airline fell 23.04 percent last month, lagging the transportation sector’s loss of 3.57 percent and the S&P 500’s gain of 2.85 percent.

Market participants will be closely monitoring American Airlines’ financial results in the upcoming release. The company is expected to report earnings per share of $1.11, down 42.19% from the corresponding quarter last year. At the same time, our latest consensus estimate is calling for revenue of $14.55 billion, up 3.5% from the corresponding quarter last year.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.14 per share and revenue of $55.21 billion, representing changes of -19.25% and +4.59%, respectively, from the prior year.

Investors should also pay attention to any recent changes in analyst estimates for American Airlines. These changes typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can view positive estimate changes as a sign of optimism about the company’s business prospects.

Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record backed by third-party audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate has moved 16.03% lower. American Airlines currently has a Zacks Rank of #3 (Hold).

In terms of valuation, American Airlines is currently trading at a P/E ratio of 5.38, which represents a discount to the industry’s average P/E ratio of 8.94.

Also, we should mention that AAL has a PEG ratio of 0.2. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth curve. When the market closed yesterday, the Transportation & Aviation industry had an average PEG ratio of 0.83.

The Transportation – Aviation industry is part of the Transportation sector. This industry, which currently has a Zacks Industry Rank of 171, ranks in the bottom 33% of all 250+ industries.

The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.

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

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