American Airlines (AAL) Stock Lifted by Falling Oil Prices
NEW YORK (TheStreet) -- American Airlines Group (AAL) - Get Report stock is higher 0.05% to $34.72 on Monday afternoon as oil prices fell on persisting supply glut concerns.
Oil futures tumbled on Monday as output from the Organization of the Petroleum Exporting Countries (OPEC) reached all-time peaks.
In April, crude production increased 32.64 million barrels a day, according to a recent Reuters survey.
"We would not be surprised to see the rally pause for breath soon and feel that the risks currently lie more to the downside," London-based Capital Economics said in note, Reuters reports.
However, declining oil prices benefit airline carriers leading them to save money on fuel costs.
Crude oil (WTI) is slipping 2.35% to $44.84 per barrel and Brent crude is tanking 3.12% to $45.89 per barrel.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.
The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: AAL
