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Can American Airlines Group Inc. (NASDAQ: AAL) Be A Safe Investment Now?

American Airlines Group Inc. (NASDAQ:AAL) shares, rose in value on Wednesday, 05/24/23, with the stock price down by -1.92% to the previous day’s close as strong demand from buyers drove the stock to $13.80.

Actively observing the price movement in the last trading, the stock closed the session at $14.07, falling within a range of $13.55 and $13.98. The value of beta (5-year monthly) was 1.53 whereas the PE ratio was 5.22 over 12-month period. Referring to stock’s 52-week performance, its high was $18.22, and the low was $11.65. On the whole, AAL has fluctuated by 7.48% over the past month.

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With the market capitalization of American Airlines Group Inc. currently standing at about $9.15 billion, investors are eagerly awaiting this quarter’s results, scheduled for Jul 19, 2023 – Jul 24, 2023. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $1.31, which is expected to increase to $1.31 for fiscal year $2.74 and then to about $3.17 by fiscal year 2024. Data indicates that the EPS growth is expected to be 448.00% in 2024, while the next year’s EPS growth is forecast to be 15.70%.

Analysts have estimated the company’s revenue for the quarter at $13.6 billion, with a low estimate of $13.5 billion and a high estimate of $13.76 billion. According to the average forecast, sales growth in current quarter could jump up 1.40%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $52.67 billion, representing an increase of 7.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were 1 upward and no downward review(s) in last seven days. We see that AAL’s technical picture suggests that short-term indicators denote the stock is a 50% Sell on average. However, medium term indicators have put the stock in the category of 100% Sell while long term indicators on average have been pointing out that it is a 50% Sell.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of AAL currently trading nearly -1.80% and -0.76% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 45.59, while the 7-day volatility ratio is showing 3.69% which for the 30-day chart, stands at 3.53%. Furthermore, American Airlines Group Inc. (AAL)’s beta value is 1.51, and its average true range (ATR) is 0.52. The company’s stock has been forecasted to trade at an average price of $18.19 over the course of the next 52 weeks, with a low of $9.50 and a high of $29.00. Based on these price targets, the low is 31.16% off current price, whereas the price has to move -110.14% to reach the yearly target high. Additionally, analysts’ median price of $17.00 is likely to be welcomed by investors because it represents a decrease of -23.19% from the current levels.

A comparison of American Airlines Group Inc. (AAL) with its peers suggests the former has fared considerably weaker in the market. AAL showed an intraday change of -1.92% in last session, and over the past year, it shrunk by -17.61%%. In comparison, Southwest Airlines Co. (LUV) has moved lower at -1.83% on the day and was down -33.29% over the past 12 months. On the other hand, the price of Delta Air Lines Inc. (DAL) has fallen -2.73% on the day. The stock, however, is off -11.61% from where it was a year ago. Additionally, there is a loss of -2.53% for United Airlines Holdings Inc. (UAL) in last trading while the stock has seen an overall depriciation of 4.24%% over the past year. The PE ratio stands at 5.22 for American Airlines Group Inc., compared to 29.17 for Southwest Airlines Co., and 11.82 for Delta Air Lines Inc. Other than that, the overall performance of the S&P 500 during the last trading session shows that it lost -0.73%. Meanwhile, the Dow Jones Industrial Slipped by -0.77%.

Data on historical trading for American Airlines Group Inc. (NASDAQ:AAL) indicates that the trading volumes over the past 10 days have averaged 23.13 million and over the past 3 months, they’ve averaged 24.19 million. According to company’s latest data on outstanding shares, there are 652.00 million shares outstanding.

Nearly 0.10% of American Airlines Group Inc.’s shares belong to company insiders and institutional investors own 55.50% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 69.95 million shares as on Apr 27, 2023, resulting in a short ratio of 2.54. According to the data, the short interest in American Airlines Group Inc. (AAL) stood at 10.71% of shares outstanding as of Apr 27, 2023; the number of short shares registered in Feb 27, 2023 reached 62.8 million. The stock has risen by 8.49% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the AAL stock heading into the next quarter.

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