Is it Time to Buy American Airlines Stock?

American AirlinesAmerican Airlines Group Inc. (NASDAQ: AAL) is the holding company behind American Airlines Inc. and smaller subsidiaries including PSA Airlines, Piedmont Airlines, and Envoy Air.

American Airlines is the largest airline in the world by passenger volume, fleet size, and distance traveled. The company was hit heavily by the Coronavirus Pandemic as global travel crawled to a halt. With the U.S. economy now reopening, there’s likely to be a strong upside on the stock. Coronavirus vaccines will limit the need for travel restrictions in the months to come, and investors who buy now could see significant gains.

The company is expected to generate positive cash flow this month, due to an increase in demand for passenger flights. Forward bookings also appear to be positive, suggesting that revenue will grow in the short-term. The high-end stock target price of $28 is within reach as it closely reflects the price just before the global pandemic was declared. Up more than 50% in the year to date, this is one of the best stocks to watch to leverage the recovery in global air travel.

Key Data:

  • 1 Year Price Growth: 04%
  • YTD Price Growth: 17%
  • 3 Month Price Growth: 14%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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