Wednesday, June 29, 2022

American Airlines Group Inc. (NASDAQ:AAL) is Waving the Bear Flag

The American Airlines Group Inc. (AAL) shares are trading at lower $14.38 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $12.75.

To add more color to this target, the company’s high over the last year is $34.99 and the low is $8.25. Over the last 52 weeks, AAL is down -58.90% while the S&P 500 is down -5.76%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AAL reported a profit of $625.0 million. American Airlines Group Inc. also saw revenues increase to $8.52 billion. In addition, AAL has free cash flow of -$1.01 billion as of 03-2020 The company’s EBITDA came in at -$2.55 billion which compares well with its peers.

AAL booked profit margins of -1.70%, its Return on Equity (ROE) is 113.10%, and its Return on Assets is -1.20%. All told, it is clear that, AAL needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AAL has a short ratio of 1.67 and outstanding shares of 425.71M.

Company Outlook

AAL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 192.24 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.87. American Airlines Group Inc. AAL also noted assets of $58.58 billion at the end of the last quarter. Investors should also keep an eye on sector updates as AAL has historically followed its peers on positive news.

All told, American Airlines Group Inc. AAL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AAL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

American Airlines Group Inc. AAL is now commanding a market cap of 6.12B and a float of 417.74M. AAL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AAL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AAL, either long or short, and we have not been compensated for this article.

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