American Airlines (AAL) could be a great long term investment
American Airlines Group (AAL) currently trades at $10.06 and has fallen by 5.89% today. American Airlines has over $43 billion in net PP&E ignored by the stock market. On top of that all the major airlines have net PPE&E above debt in the $20+ billion range. With government grants, American Airlines is probably only burning $1-2 billion in cash per quarter at current 10% capacity levels.
Based on this information, investorsQ rates this stock 6 out of 10. We give it this rating based on current information. As air travel starts to bottom out and the sector begins to review the aide offered to the sector via the CARES Act, American Airlines Group (AAL) remains the beaten down stock to watch. Investors constantly focus on the debt loads of the major airlines and make incorrect assumptions about this airline. The high forecast for American Airlines Group is $55.00 and the low is $17.00. Notably, the company’s market cap is $4.29 billion with a 52 week high of $35.24 and a 52 week low of $10.00.