American Airlines Group (AAL) Rising Before The Market Opens
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified American Airlines Group as such a stock due to the following factors:
- AAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $475.7 million.
- AAL traded 12,966 shares today in the pre-market hours as of 8:28 AM.
- AAL is up 2.7% today from Friday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AAL with the Ticky from Trade-Ideas. See the FREE profile for AAL NOW at Trade-Ideas
More details on AAL:
American Airlines Group Inc., through its subsidiaries, operates in the airline industry. As of December 31, 2015, the company operated 946 mainline aircrafts, as well as 587 regional aircrafts through regional airline subsidiaries and third-party regional carriers. The stock currently has a dividend yield of 1.4%. AAL has a PE ratio of 3. Currently there are 9 analysts that rate American Airlines Group a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for American Airlines Group has been 11.2 million shares per day over the past 30 days. American Airlines Group has a market cap of $17.0 billion and is part of the services sector and transportation industry. The stock has a beta of 3.85 and a short float of 7.9% with 2.66 days to cover. Shares are down 29.1% year-to-date as of the close of trading on Friday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates American Airlines Group as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Airlines industry and the overall market, AMERICAN AIRLINES GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $2,620.00 million or 5.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.99%.
- AAL, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Airlines industry average. The net income has decreased by 24.9% when compared to the same quarter one year ago, dropping from $932.00 million to $700.00 million.
- The debt-to-equity ratio is very high at 4.62 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, AAL has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full American Airlines Group Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.