(AAL) American Airlines - Ratings and Ratios

American Airlines Group Inc. (NASDAQ:AAL), one of the worlds largest airlines, operates as a major network air carrier in the United States, Latin America, the Atlantic, and the Pacific. The company provides scheduled air transportation for passengers and cargo, utilizing its extensive network of hubs including Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. Internationally, it operates through partner gateways in key cities such as London, Doha, Madrid, Sydney, and Tokyo. AALs mainline fleet comprises 977 aircraft, primarily consisting of Boeing and Airbus models, reflecting its commitment to modernization and efficiency. As a founding member of the Oneworld Alliance, American Airlines collaborates with global carriers like British Airways and Qantas, enhancing its route network and services. The companys AAdvantage frequent flyer program is one of the largest, offering loyalty benefits to millions of travelers. Originally known as AMR Corporation, the company rebranded as American Airlines Group Inc. in December 2013, with a rich history dating back to 1934 and headquarters in Fort Worth, Texas.

From a financial perspective, American Airlines Group Inc. has a market capitalization of $6.385 billion, with a trailing P/E ratio of 7.51 and a forward P/E of 8.89, indicating moderate valuation expectations. The price-to-sales ratio of 0.12 suggests potential undervaluation relative to its revenue. However, the negative return on equity of -21.27% raises concerns about profitability and operational efficiency. The stocks technical indicators show a downtrend, with the 20-day SMA at 9.85, below the 50-day SMA of 11.96 and 200-day SMA of 13.05. The Average True Range (ATR) of 0.66 signals moderate volatility. Over the next three months, AALs stock is expected to continue its downward trend, potentially testing support levels around $8.50. However, the low P/S ratio could attract value investors, offering a recovery opportunity if operational improvements or increased demand materialize.