For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. The merger, which occurred after a bankruptcy filing by American Airlines, resulted in the formation of the largest airline company in the world. American Airlines Group is headquartered in Fort Worth, TX. The company’s primary business is providing passenger and cargo services. In 2023, the carrier operated 965 mainline aircraft. Its regional airline subsidiaries and third-party regional carriers operated an additional 536 regional jets. American Eagle is the brand name for the regional branch of American Airlines, under which six individual regional airlines operate short- and medium-haul feeder flights. Three of them, Envoy Air, Piedmont Airlines, and PSA Airlines, are wholly owned subsidiaries of the American Airlines Group. American Airlines hubs are at Charlotte, Chicago, Dallas/Fort Worth, London Heathrow, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. On domestic routes, the company competes with the likes of Alaska Airlines, Allegiant Air, Delta Air Lines, Frontier Airlines, JetBlue, Southwest Airlines and United Airlines. Its international routes cover Canada, Mexico, the Caribbean, Central and South America, Asia, Europe, Australia and New Zealand.
AAL is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 6.3X for the current fiscal year compared to the Transportation - Airline industry's P/E of 9.2X. Additionally, AAL has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 2.8X. Value investors should also note AAL's Price/Sales ratio of 0.2X.
Many value investors pay close attention to a company's earnings as well. For AAL, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.26 to $2.42 per share for 2025. Per share AAL boasts an average earnings surprise of 37.1%.
Investors should take the time to consider AAL for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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