Are Transportation Stocks Lagging American Airlines (AAL) This Year?

Zacks
2024-12-26

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Has American Airlines (AAL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

American Airlines is a member of the Transportation sector. This group includes 135 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. American Airlines is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 53.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that AAL has returned about 26.3% since the start of the calendar year. At the same time, Transportation stocks have lost an average of 1.3%. This means that American Airlines is performing better than its sector in terms of year-to-date returns.

Another Transportation stock, which has outperformed the sector so far this year, is Dynagas LNG (DLNG). The stock has returned 88.9% year-to-date.

In Dynagas LNG's case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, American Airlines is a member of the Transportation - Airline industry, which includes 31 individual companies and currently sits at #30 in the Zacks Industry Rank. Stocks in this group have gained about 34.6% so far this year, so AAL is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Dynagas LNG belongs to the Transportation - Services industry. This 26-stock industry is currently ranked #127. The industry has moved -11% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to American Airlines and Dynagas LNG as they could maintain their solid performance.

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Dynagas LNG Partners LP (DLNG) : Free Stock Analysis Report

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