Trade-Ideas: American Airlines Group (AAL) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a post-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 $421.4 million.
- AAL is up 3.5% 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 0.8%. AAL has a PE ratio of 12.4. Currently there are 9 analysts that rate American Airlines Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for American Airlines Group has been 12.0 million shares per day over the past 30 days. American Airlines Group has a market cap of $33.9 billion and is part of the services sector and transportation industry. The stock has a beta of 3.85 and a short float of 1.9% with 1.66 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Friday.
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Analysis:
rates American Airlines Group as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. 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 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.
- The revenue growth came in higher than the industry average of 21.6%. Since the same quarter one year prior, revenues rose by 38.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 109.46% and other important driving factors, this stock has surged by 29.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 129.8% when compared to the same quarter one year prior, rising from -$2,001.00 million to $597.00 million.
- The debt-to-equity ratio is very high at 8.87 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 0.73, which illustrates the inability to avoid short-term cash problems.
- You can view the full American Airlines Group Ratings Report.
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