#7 - American Airlines (NASDAQ:AAL)
American Airlines (NASDAQ: AAL) - One of the great contradictions of the airline industry is that lower oil prices, which reduce fuel costs, are generally considered a negative sign. In the past, having these lower fuel costs have led to undisciplined capacity growth which in turn hurts revenue. So it’s not surprising that American Airlines, along with other airline stocks has been getting punished lately. Although oil prices have stabilized, and even increased a little bit, the stock is still down just under 35% for the year. However, the decline of the index for the airline sector is on pace with the Dow Jones Industrial Average. Analy1sts seem to be shrugging off the recent bad news and are forecasting a consensus price of $50.88 for the stock, up from its current $33.91. The airline weathered some bad news earlier this year when the stock dropped on reports that United was expanding their operations. The stock is not without risk particularly if the economy rolls over as some expect it might do. If the market weathers the recent correction and moves forward, this stock looks undervalued, however right now the stock is extremely volatile, with options traders causing the volume to spike.
About American Airlines Group
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, DC, as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
Read More - Current Price
- $14.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $13.96 (2.9% Downside)
