American Airlines Group Inc. (NASDAQ:AAL) is one of the stocks that are grabbing investor focus today: sinking -2.51% or (-0.7 points) to $27.38 from its previous close of $28.08. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 4062525 contracts so far this session. AAL shares had a relatively better volume day versus average trading capacity of 7.16 million shares, but with a 0.43 billion float and a -2.09% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AAL stock indicates that the average analyst price target is $36.83 per share. This means the stock has a potential increase of 34.51% from where the AAL share price has been trading recently which is between $28.01 and $28.9938. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $27. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $55.
Looking at the current readings for American Airlines Group Inc., the two-week RSI stands at 38.45. This figure suggests that AAL stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AAL readings is similarly very revealing as it has a stochastic reading of 18.78% at this stage. This figure means that AAL share price today is being overbought.
Technical chart claims that American Airlines Group Inc. (AAL) would settle between $28.71/share to $29.35/share level. However, if the stock price goes below the $27.73 mark, then the market for American Airlines Group Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $27.38 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.38. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at UBS, assumed coverage of AAL assigning Sell rating, according to their opinion released on November 13. Citigroup, analysts launched coverage of American Airlines Group Inc. (NASDAQ:AAL) stock with a Sell recommendation, according to their flash note issued to investors on October 31. Analysts at Berenberg, made their first call for the equity with a Buy recommendation, according to a research note that dated back to September 06.
AAL equity has an average rating of 2.64, with the figure leaning towards a bullish end. 17 analysts who tracked the company were contacted by Reuters. Amongst them, 5 rated the stock as a hold while the remaining 12 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 10 analysts rated American Airlines Group Inc. (NASDAQ:AAL) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AAL stock price is currently trading at 5.21X forward 12-month Consensus EPS estimates, and its P/E ratio is 7.9 while for the average stock in the same group, the multiple is 10.8. American Airlines Group Inc. current P/B ratio of 76.9 means it is trading at a premium against its industry’s 2.3.