Trade-Ideas LLC identified

American Airlines Group

(

AAL

) as a pre-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 $446.8 million.
  • AAL traded 100,835 shares today in the pre-market hours as of 8:50 AM.
  • AAL is down 2.2% today from yesterday'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 1%. 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.

TST Recommends

The average volume for American Airlines Group has been 8.6 million shares per day over the past 30 days. American Airlines Group has a market cap of $25.0 billion and is part of the services sector and transportation industry. The stock has a beta of 3.85 and a short float of 3.6% with 1.76 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Airlines Group as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, expanding profit margins, good cash flow from operations 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 ratings report include:

  • 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 ($9.09 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.
  • 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. Along with this, the net profit margin of 15.81% is above that of the industry average.
  • 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 173.77%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.5%. 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.

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