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Are Investors Undervaluing American Airlines (AAL) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
American Airlines (AAL - Free Report) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.09. This compares to its industry's average Forward P/E of 10.57. Over the last 12 months, AAL's Forward P/E has been as high as 9,493.45 and as low as -3,032.07, with a median of 11.59.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAL has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.52.
If you're looking for another solid Transportation - Airline value stock, take a look at Controladora Vuela Compania de Aviacion, B. de C.V (VLRS - Free Report) . VLRS is a # 2 (Buy) stock with a Value score of A.
Controladora Vuela Compania de Aviacion, B. de C.V sports a P/B ratio of 6.08 as well; this compares to its industry's price-to-book ratio of 4.54. In the past 52 weeks, VLRS's P/B has been as high as 8.19, as low as 3.69, with a median of 5.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Airlines and Controladora Vuela Compania de Aviacion, B. de C.V are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAL and VLRS feels like a great value stock at the moment.
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Are Investors Undervaluing American Airlines (AAL) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
American Airlines (AAL - Free Report) is a stock many investors are watching right now. AAL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.09. This compares to its industry's average Forward P/E of 10.57. Over the last 12 months, AAL's Forward P/E has been as high as 9,493.45 and as low as -3,032.07, with a median of 11.59.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAL has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.52.
If you're looking for another solid Transportation - Airline value stock, take a look at Controladora Vuela Compania de Aviacion, B. de C.V (VLRS - Free Report) . VLRS is a # 2 (Buy) stock with a Value score of A.
Controladora Vuela Compania de Aviacion, B. de C.V sports a P/B ratio of 6.08 as well; this compares to its industry's price-to-book ratio of 4.54. In the past 52 weeks, VLRS's P/B has been as high as 8.19, as low as 3.69, with a median of 5.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Airlines and Controladora Vuela Compania de Aviacion, B. de C.V are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAL and VLRS feels like a great value stock at the moment.