We recently issued an updated report on American Airlines Group Inc. (AAL - Free Report) .
Sharp drop in air-travel demand is hurting passenger revenues, which contribute majorly to the top line. The carrier incurred a loss in each of the first three quarters of 2020, mainly due to the 64.2% drop in passenger revenues in the first nine months of 2020.
Long-haul international capacity is estimated to be down nearly 75% in the final quarter of 2020. Moreover, with the spike in coronavirus cases in the United States, the company witnessed further softness in demand.
The company’s total debt-to-total capital ratio stood at 1.2 at the end of the third quarter, higher than its reading of 1.11 at the end of the June quarter. This implies that a company is highly leveraged with more risk of insolvency.
Nevertheless, low fuel prices are helping American Airlines partly offset the adversities. Evidently, average fuel cost per gallon (on a consolidated basis: including taxes) declined 25.4% to $1.55 in the first nine months of 2020. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed declined 49% in the first nine months of 2020, thereby driving the bottom line.
Zacks Rank & Stocks to Consider
American Airlines currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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We recently issued an updated report on American Airlines Group Inc. (AAL - Free Report) .
Sharp drop in air-travel demand is hurting passenger revenues, which contribute majorly to the top line. The carrier incurred a loss in each of the first three quarters of 2020, mainly due to the 64.2% drop in passenger revenues in the first nine months of 2020.
Long-haul international capacity is estimated to be down nearly 75% in the final quarter of 2020. Moreover, with the spike in coronavirus cases in the United States, the company witnessed further softness in demand.
The company’s total debt-to-total capital ratio stood at 1.2 at the end of the third quarter, higher than its reading of 1.11 at the end of the June quarter. This implies that a company is highly leveraged with more risk of insolvency.
Nevertheless, low fuel prices are helping American Airlines partly offset the adversities. Evidently, average fuel cost per gallon (on a consolidated basis: including taxes) declined 25.4% to $1.55 in the first nine months of 2020. With major part of the fleet remaining grounded/under-utilized, fuel gallons consumed declined 49% in the first nine months of 2020, thereby driving the bottom line.
Zacks Rank & Stocks to Consider
American Airlines currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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