NEW YORK (TheStreet) -- American Airlines Group (AAL) - Get Report shares are slumping 1.38% to $42.21 on jumping oil prices. 

Crude oil (WTI) is spiking 2.98% to $37.69 per barrel and Brent crude is gaining 1.15% to $36.88 per barrel, according to the CNBC.com index.

While oil futures were showing gains, the immediate outlook for oil prices remains bleak. Markets continue to stay saturated as crude producers in the Middle East and U.S. shale oil drillers continue to pump more oil.

Separately, American Airlines today said that its unit U.S. Airways Group merged with the company, Reuters reports. 

This action is an administrative step and does not impact the company's customers or employees.

"With US Airways merged into American Airlines and U.S. Airways Group merged into American Airlines Group, all of their obligations (including debts and liabilities) become the obligations of American Airlines and American Airlines Group, respectively," spokesperson Matt Miller told Reuters.

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 articles's author. TheStreet Ratings has this to say about the recommendation:

We rate AMERICAN AIRLINES GROUP INC as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, good cash flow from operations, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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. 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).
  • 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 significantly increased by 426.86% to $1,180.00 million when compared to the same quarter last year. In addition, AMERICAN AIRLINES GROUP INC has also vastly surpassed the industry average cash flow growth rate of 133.77%.
  • 40.14% is the gross profit margin for AMERICAN AIRLINES GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.81% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.4%. 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.
  • You can view the full analysis from the report here: AAL