Post-Market Activity Shows American Airlines Group (AAL) Down
Trade-Ideas LLC identified
(
) as a post-market laggard 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 $301.7 million.
- AAL is down 2.1% today from today's close.
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More details on AAL:
American Airlines Group Inc., through its subsidiaries, operates in the airline industry. As of December 31, 2014, the company operated 983 mainline jets, as well as 566 regional aircrafts through regional airline subsidiaries and third-party regional carriers. The stock currently has a dividend yield of 0.9%. AAL has a PE ratio of 6. Currently there are 7 analysts that rate American Airlines Group a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for American Airlines Group has been 10.4 million shares per day over the past 30 days. American Airlines Group has a market cap of $28.0 billion and is part of the services sector and transportation industry. The stock has a beta of 3.85 and a short float of 4.2% with 3.58 days to cover. Shares are down 18.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates American Airlines Group as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- AMERICAN AIRLINES GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMERICAN AIRLINES GROUP INC turned its bottom line around by earning $3.92 versus -$8.48 in the prior year. This year, the market expects an improvement in earnings ($9.02 versus $3.92).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.1%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Airlines industry average, but is greater than that of the S&P 500. The net income increased by 79.7% when compared to the same quarter one year prior, rising from $942.00 million to $1,693.00 million.
- The debt-to-equity ratio is very high at 5.47 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, AAL maintains a poor quick ratio of 0.81, which illustrates the inability to avoid short-term cash problems.
- You can view the full American Airlines Group Ratings Report.
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