American Airlines Group Stock Buy Hold or Sell Recommendation
| AAL Stock | USD 14.52 0.12 0.82% |
Considering the 90-day investment horizon and your below-average risk tolerance, our recommendation regarding American Airlines Group is 'Strong Buy'. The recommendation algorithm takes into account all of American Airlines' available fundamental, technical, and predictive indicators you will find on this site.
Check out American Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' constraints. American Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
American |
Execute American Airlines Buy or Sell Advice
The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Airlines Group. Macroaxis does not own or have any residual interests in American Airlines Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Airlines' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
American Airlines Trading Alerts and Improvement Suggestions
| American Airlines Group has 40.66 B in debt with debt to equity (D/E) ratio of 7.53, demonstrating that the company may be unable to create cash to meet all of its financial commitments. American Airlines has a current ratio of 0.77, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for American to invest in growth at high rates of return. | |
| American Airlines has a strong financial position based on the latest SEC filings | |
| About 57.0% of American Airlines shares are held by institutions such as insurance companies | |
| Latest headline from aol.com: Enraged passenger unloads flurry of punches on airport worker, wild video shows |
American Airlines Returns Distribution Density
The distribution of American Airlines' historical returns is an attempt to chart the uncertainty of American Airlines' future price movements. The chart of the probability distribution of American Airlines daily returns describes the distribution of returns around its average expected value. We use American Airlines Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Airlines returns is essential to provide solid investment advice for American Airlines.
| Mean Return | 0.57 | Value At Risk | -2.77 | Potential Upside | 6.14 | Standard Deviation | 2.38 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Airlines historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
American Stock Institutional Investors
| Shares | Northern Trust Corp | 2024-09-30 | 4.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 4.3 M | Goldman Sachs Group Inc | 2024-06-30 | 4.2 M | Bank Of New York Mellon Corp | 2024-06-30 | 4.1 M | Ubs Group Ag | 2024-06-30 | 3.2 M | Jane Street Group Llc | 2024-06-30 | 3.2 M | Jpmorgan Chase & Co | 2024-06-30 | 2.9 M | Schonfeld Strategic Advisors Llc | 2024-09-30 | 2.8 M | Vanguard Group Inc | 2024-09-30 | 62 M | Primecap Management Company | 2024-09-30 | 57.3 M |
American Airlines Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (400M) | 88M | (45M) | (1.8B) | (520M) | (494M) | |
| Change In Cash | 4M | 109M | 9M | 178M | 95M | 99.8M | |
| Free Cash Flow | (453M) | (8.5B) | 496M | (733M) | 1.2B | 1.3B | |
| Depreciation | 2.3B | 2.4B | 2.3B | 2.3B | 2.3B | 1.3B | |
| Other Non Cash Items | 24M | 1.2B | (222M) | 242M | 90M | 85.5M | |
| Dividends Paid | 178M | 43M | 12.2B | 3.5B | 4.1B | 4.3B | |
| Capital Expenditures | 4.3B | 2.0B | 208M | 2.9B | 2.6B | 2.7B | |
| Net Income | 1.7B | (8.9B) | (2.0B) | 127M | 822M | 863.1M | |
| End Period Cash Flow | 290M | 399M | 408M | 586M | 681M | 715.1M | |
| Investments | 960M | (3.0B) | (5.5B) | 636M | (502M) | (527.1M) | |
| Net Borrowings | (230M) | 8.2B | 4.8B | (2.7B) | (3.1B) | (2.9B) | |
| Change To Netincome | 678M | (1.2B) | 362M | 65M | 58.5M | 71.4M |
American Airlines Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Airlines or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Airlines' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.37 | |
β | Beta against Dow Jones | 1.46 | |
σ | Overall volatility | 2.42 | |
Ir | Information ratio | 0.18 |
American Airlines Volatility Alert
American Airlines Group has relatively low volatility with skewness of 0.78 and kurtosis of 1.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Airlines' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Airlines' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.American Airlines Fundamentals Vs Peers
Comparing American Airlines' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Airlines' direct or indirect competition across all of the common fundamentals between American Airlines and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Airlines or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Airlines' fundamental indicators could also be used in its relative valuation, which is a method of valuing American Airlines by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare American Airlines to competition |
| Fundamentals | American Airlines | Peer Average |
| Return On Asset | 0.0275 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Current Valuation | 39.76 B | 16.62 B |
| Shares Outstanding | 657.13 M | 571.82 M |
| Shares Owned By Insiders | 1.25 % | 10.09 % |
| Shares Owned By Institutions | 57.08 % | 39.21 % |
| Number Of Shares Shorted | 56.94 M | 4.71 M |
| Price To Earning | 7.08 X | 28.72 X |
| Price To Sales | 0.18 X | 11.42 X |
| Revenue | 52.79 B | 9.43 B |
| Gross Profit | 11.44 B | 27.38 B |
| EBITDA | 5.2 B | 3.9 B |
| Net Income | 822 M | 570.98 M |
| Cash And Equivalents | 11.23 B | 2.7 B |
| Cash Per Share | 17.28 X | 5.01 X |
| Total Debt | 40.66 B | 5.32 B |
| Debt To Equity | 7.53 % | 48.70 % |
| Current Ratio | 0.79 X | 2.16 X |
| Book Value Per Share | (7.39) X | 1.93 K |
| Cash Flow From Operations | 3.8 B | 971.22 M |
| Short Ratio | 1.85 X | 4.00 X |
| Earnings Per Share | 0.42 X | 3.12 X |
| Price To Earnings To Growth | 0.19 X | 4.89 X |
| Target Price | 14.51 | |
| Number Of Employees | 134.2 K | 18.84 K |
| Beta | 1.4 | -0.15 |
| Market Capitalization | 9.54 B | 19.03 B |
| Total Asset | 63.06 B | 29.47 B |
| Retained Earnings | (7.69 B) | 9.33 B |
| Working Capital | (8.49 B) | 1.48 B |
| Current Asset | 9.98 B | 9.34 B |
| Current Liabilities | 13.61 B | 7.9 B |
Note: Sale by Raja Vasu of 5121 shares of American Airlines [view details]
American Airlines Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 154738.0 | |||
| Daily Balance Of Power | (0.50) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 14.62 | |||
| Day Typical Price | 14.59 | |||
| Price Action Indicator | (0.16) | |||
| Period Momentum Indicator | (0.12) | |||
| Relative Strength Index | 61.91 |
About American Airlines Buy or Sell Advice
When is the right time to buy or sell American Airlines Group? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having American Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Small Value Funds Thematic Idea Now
Small Value Funds
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Value Funds Theme or any other thematic opportunities.
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Check out American Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.46) | Earnings Share 0.42 | Revenue Per Share 81.697 | Quarterly Revenue Growth 0.012 | Return On Assets 0.0275 |
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.