American Airlines (AAL) stock sinks as market gains: Here’s why

In the latest close session, American Airlines (AAL) was down 2.33% at $14.67. The stock’s performance was behind the S&P 500’s daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.28%.

The world’s largest airline’s stock has dropped by 4.21% in the past month, falling short of the Transportation sector’s gain of 1.49% and the S&P 500’s gain of 0.6%.

Investors will be eagerly watching for the performance of American Airlines in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on January 27, 2026. The company’s earnings per share (EPS) are projected to be $0.38, reflecting a 55.81% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.07 billion, indicating a 3.02% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.56 per share and a revenue of $54.7 billion, indicating changes of -71.43% and 0%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 1.5% rise in the Zacks Consensus EPS estimate. Right now, American Airlines possesses a Zacks Rank of #3 (Hold).

Investors should also note American Airlines’s current valuation metrics, including its Forward P/E ratio of 7.46. This expresses a discount compared to the average Forward P/E of 10.01 of its industry.

We can additionally observe that AAL currently boasts a PEG ratio of 0.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Transportation – Airline industry held an average PEG ratio of 0.53.

The Transportation – Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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