American Airlines Group (AAL:NSD) Analysts rate as a Hold rating, 8 negative signals detected

STA Research
by: STA Research
American Airlines Group

Based on the American Airlines stock forecast from 12 analysts, the average analyst AAL stock price target is USD 18.52 over the next 12 months. American Airlines Group’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of AAL stock forecast is Bearish, which is based on 3 positive signals and 8 negative signals. At the last closing, AAL stock price was USD 15.07AAL stock price has changed by +0.44% over the past week, +1.10% over the past month and -29.02% over the last year.

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Madrid, Seattle/Tacoma, Sydney, and Tokyo. As of December 31, 2021, it operated a mainline fleet of 865 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1930 and is headquartered in Fort Worth, Texas.

 

What we like:

High market capitalization:

American Airlines stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings:

AAL stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow:

AAL stock forecast has shown that the company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns:

AAL stock forecast has shown that this company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

AAL stock forecast has shown that the total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns:

American Airlines stock forecast shows that the company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns:

American Airlines stock forecast shows that the company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis:

AAL stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow:

American Airlines stock forecast shows that the company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

AAL stock price has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

AAL stock forecast has shown below median revenue growth in the previous 5 years compared to its sector.

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