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Is American Airlines (AAL) Ready to Breakout? | The Mesh Report

Is American Airlines (AAL) Ready to Breakout?

Christian Tharp, CMT June 7, 2021 Comments Off on Is American Airlines (AAL) Ready to Breakout?

Headquartered in Fort Worth, Texas, American Airlines (AAL) is the world’s largest airline. The company primarily operates in two segments: Mainline and Regional affiliates. AAL also has a large cargo unit, through which it offers a broad range of freight and mail services across the globe…

As you would imagine, American Airlines (AAL) struggled during the COVID-19 pandemic. The drop in passengers flying led to a huge loss of revenue for the company. In its most recent earnings report, sales were down year over year. As more people get vaccinated and start traveling again, the company is expected to get back on track.

AAL has $14 billion in cash, up from the previous quarter and more than enough to cover short-term obligations, but the company’s profit margin is a negative 61.5%. While sales are down 70.6% over the past year, they are expected to bounce back with forecasted growth of 338.7% year over year this quarter.

The stock appears undervalued with a trailing P/E of 2.81 and a forward P/E of 7.39, even with a year to date return of 54.1%, as shown in the chart below.

Take a look at the 1-year chart of AAL below with the added notations…

See chart and continue reading at STOCKNEWS.com



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