Why American Airlines (AAL) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
American Airlines (AAL)
American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. The merger, which occurred after a bankruptcy filing by American Airlines, resulted in the formation of the largest airline internationally. American Airlines Group is headquartered in Fort Worth, TX.
AAL is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 7X for the current fiscal year compared to the Transportation - Airline industry's P/E of 8.2X. Additionally, AAL has a PEG Ratio of 0.1 and a Price/Cash Flow ratio of 3.3X. Value investors should also note AAL's Price/Sales ratio of 0.2X.
A company's earnings performance is important for value investors as well. For fiscal 2023, three analysts revised their earnings estimate higher in the last 60 days for AAL, while the Zacks Consensus Estimate has increased $0.02 to $2.41 per share. AAL also holds an average earnings surprise of 23.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AAL to their portfolios.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
