It has been a very active earnings season, and this week is expected to be even busier. Today, I want to talk about my latest recommendation, American Airlines Group Inc. (AAL), says Cliff Droke, editor of Cabot Turnaround Letter.
Although the stock came under mild selling pressure last week on Thursday in an industry-wide pullback, AAL is holding up as a solid mid-stage turnaround with additional potential in the coming quarter. The firm beat top- and bottom-line expectations in its recent Q3 earnings report. It also ended the quarter with $12 billion in total available liquidity, which should help accelerate the company’s turnaround efforts.
American Airlines Group Inc. (AAL)
American Airlines is on track to reduce total debt from peak levels by $15 billion by year-end 2025. Full-year adjusted earnings per diluted share are also expected to be between $1.35 and $1.60, versus the $1.31 consensus estimate. I like the way the stock has been acting so far during the initial stages of the turnaround.
