|Bid||33.44 x 1400|
|Ask||33.45 x 1400|
|Day's Range||33.22 - 33.88|
|52 Week Range||28.81 - 58.46|
|Beta (3Y Monthly)||1.66|
|PE Ratio (TTM)||13.73|
|Earnings Date||Jan 24, 2019|
|Forward Dividend & Yield||0.40 (1.22%)|
|1y Target Est||45.18|
Zacks.com featured expert Kevin Matras highlights: American Airlines, ArcBest, AmerisourceBergen, Cardinal Health and CVS Health
A blizzard that the National Weather Service says is shifting from the Midwest into the Northeast may leave up to two feet of snow. Governors in Pennsylvania, New Jersey and New York had previously declared states of emergency. Delta Air Lines Inc., Southwest Airlines Co., American Airlines Group Inc. and JetBlue Airways Corp. waived rebooking fees this weekend for travelers disrupted by the storm.
# American Airlines Group Inc ### NASDAQ/NGS:AAL View full report here! ## Summary * Perception of the company's creditworthiness is negative but improving * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate ## Bearish sentiment Short interest | Positive Short interest is low for AAL with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Negative ETF activity is negative and may be weakening. The net inflows of $3.46 billion over the last one-month into ETFs that hold AAL are among the lowest of the last year and appear to be slowing. ## Economic sentiment PMI by IHS Markit | Negative According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. ## Credit worthiness Credit default swap | Negative The current level displays a negative indicator with a strengthening bias over the past 1-month. Although AAL credit default swap spreads are decreasing, they are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
A winter storm threatening a wide stretch of the country could keep travelers grounded over the long holiday weekend, another headache for passengers already facing the prospect of lengthy security lines at some airports. Airlines are waiving fees to change flights at dozens of cities from Lincoln, Neb., to Bangor, Maine, as a winter storm moves eastward. The storm is slated to move rapidly across the Midwest into New England, intensifying along the way and bringing near-blizzard conditions over parts of New England Sunday, according to the National Weather Service.
In the latest trading session, American Airlines (AAL) closed at $33.95, marking a +1.09% move from the previous day.
Boeing stock looked like a strong buy even before the positive trade talk news between the world's two largest economies.
Airlines waived change fees ahead of winter storm Harper. Travelers can change their tickets to travel as late as next week as the storm approaches the East Coast, bringing snow, sleet and heavy rain.
Kansas City Southern's (KSU) Q4 results benefit from an impressive performance of Chemical & Petroleum and Agriculture & Minerals segments. However, high operating expenses partly affect results.
High costs might mar American Airlines' (AAL) Q4 results. However, the headwind is likely to be countered by strong passenger revenues.
The two airlines based in North Texas saw mixed results in the annual airlines rankings put together by the Wall Street Journal.
Due to rapidly-rising geopolitical tensions, I have a long-term bullish perspective on the defense industry. But Boeing (NYSE:BA) has robust exposure to both civilian and military applications, making it an appealing package. Under normal circumstances, I'd wholeheartedly recommend Boeing stock. However, recent events make BA a tricky call. Specifically, I'm referring to Indonesia's Lion Air Flight 610 that crashed on October 29th, killing all onboard. After digesting the awful human tragedy, the finger-pointing began. At the center of the controversy is the airplane involved in the accident, a Boeing 737 Max. The Max represents the latest version of the venerable 737 series. As such, it features technological upgrades that supposedly make the plane safer to operate. A key improvement, the Maneuvering Characteristics Augmentation System (MCAS), is integrated in the 737 Max, but not in older versions. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Both Boeing and Lion Air agree that the critical malfunctioned occurred in the MCAS. That admission alone presents a worrying headwind for BA stock. According to the accident investigators, Lion Air's flight crew struggled with the MCAS, which constantly pushed the airliner's nose downward. * 10 Growth Stocks With the Future Written All Over Them From the evidence available, outsiders arrive at a logical conclusion. Without this new "improvement," Flight 610's passengers and crew would likely still be alive. Obviously, this is terrible PR for Boeing stock. Moreover, Lion Air claimed that BA failed to educate the company about MCAS, and how to respond in an emergency. Another damning indictment against BA stock: multiple airliners, including Southwest Airlines (NYSE:LUV) and American Airlines (NASDAQ:AAL), support Lion Air's accusation. However, Boeing pushed back, stating that standard operating procedures would have address the MCAS failure. Also, a Lion Air ground crew may have inadvertently tampered with the MCAS sensor on the doomed flight. ### Boeing Stock Hangs on a Delicate Thread Right now, I believe Lion Air has the stronger argument. While the flight crew may have responded inappropriately, and the ground crew may have erred in the maintenance process, BA has an absolute responsibility to inform all parties about MCAS. Not doing so is negligent. However, I reached my conclusion without the benefit of the cockpit voice recorder (CVR). This would show how the pilots responded to the malfunction. And just recently, Indonesian investigators recovered the CVR. Finding the CVR was a stroke of luck. In about two weeks, the device's acoustic beacon which pings its location would have died. At the same time, it could also spell trouble for Boeing stock if the CVR confirms Lion Air's side (as well as Southwest's and American Airlines'). With the CVR, investigators can have a true glimpse into the flight crew's mindset. If any indication exists that the pilots attempted to regain control through standard measures but failed, the fallout may significantly harm BA stock. For one thing, Boeing has largely been on the defensive. Rather than offer viable theories, they're denying Lion Air's accusations. These denials include rebuttals that BA provided adequate information on dealing with MCAS-related emergencies. An analysis of the CVR may evaporate either party's explanations or accusations. But even if the cockpit recording suggested pilot error, Boeing stock still has a problem. In this case, the error didn't occur in a vacuum. The culprit still remains the MCAS. In my opinion, the cockpit recording only has two outcomes for BA stock: bad news or really bad news. Either way, Lion Air asks the same question: why did you provide airliners with faulty technology? It doesn't help that the Federal Aviation Administration warned 737 Max pilots about the MCAS system following the accident. Such announcements indict the system, not the pilot. ### Be Patient With BA stock I'm not saying Boeing stock is done. As I mentioned earlier, I have a longer-term perspective on defense companies. Militarily and politically, Boeing offers multiple contributions, not the least of which is Air Force One. Furthermore, management has significantly expanded its footprint. For instance, its partnerships with multiple Japanese companies to produce next-generation electric-propulsion airplanes appear promising. Japan eagerly wishes to grow its burgeoning aviation industry. If the country achieves half the success it did with automobiles, the Boeing-Japan partnership will reap significant profits. But in the meantime, this Lion Air controversy isn't going away. The airline previously threatened to cancel a $22 billion order. Depending on the results of the investigation, we may have massive lawsuits flying around. * 7 Stocks to Buy as the Dollar Weakens For me, the bottom line is that serious distractions exist. With BA stock gyrating wildly in the past few months, I'd wait on the sidelines. You may regret a few missed percentage points. On the other hand, you might save yourself heartache if this ugly incident doesn't go Boeing's way. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post A Lucky Break for Lion Air Investigators May Hurt Boeing Stock appeared first on InvestorPlace.
The reputation of U.S. airlines took a beating last year amid several high-profile incidents that garnered international headlines. But heading into the holiday travel season, the number of official complaints lodged against U.S. air carriers actually saw a slight decrease compared to a year ago.
As ultra-low-fare Frontier continues to expand its presence in Chicago, the carrier could pose a larger threat to behemoths such as American Airlines and United Airlines.
American Airlines (AAL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
American Airlines wants a level of control over international flights that makes some competitors wary.
This week's earnings release by Delta Air Lines (NYSE:DAL) was not much of a surprise. The company had issued an earnings warning on Jan. 3 -- cutting its unit revenue estimates down to about 3% from the prior estimate of 3.5%. There was a silver lining along with that warning: earnings would likely come in at the high end of October guidance. Still, DAL stock got hit hard when the results finally came. There was also a sell-off in Delta's airline peers, including in American Airlines Group (NASDAQ:AAL) and United Continental Holdings (NASDAQ:UAL). OK, then, what were the final fourth-quarter numbers? Well, overall revenues rose by 5% to $10.74 billion and earnings were $1.02 billion, or $1.49 per share. When adjusting for one-time factors, the earnings came to $1.30 per share. As for the Street consensus, it was for $10.72 billion on the top line and $1.28 per share for profits. And unit revenue increased by about 3.2%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips So, yes, on the news there was little impact on DAL stock. Yet, since mid-November, the shares have lost 15% of their value versus a 4.4% decline in the S&P 500 index. ### Delta Faces a Bumpy Ride Now going forward, there are likely to be more problems for DAL stock as the company is facing several headwinds. Note that the forecast for the current quarter is for earnings to range from 70 cents to 90 cents a share. Yet Wall Street had estimates for 74 cents a share. Oh, and Delta also announced that unit revenue would be flat to 2%. * 10 Growth Stocks With the Future Written All Over Them Part of this is due to a slowdown in the global economy, which is putting pressure on demand for travel. A stronger U.S. dollar isn't helping much, either. But curiously, the steep drop in oil prices may be another factor. Why? Airlines may get too aggressive in lowering prices. Let's face it, the business is notorious for being hyper competitive and susceptible to price wars. Although, perhaps the biggest wild card for DAL stock is the partial shutdown of the federal government. On the earnings call, the company's CEO, Ed Bastian, said that this could cost the airline roughly $25 million per month. The shutdown will also mean a delay in the rollout of Delta's new Airbus A220 aircraft, since the FAA officials have been furloughed. Being a good corporate citizen, the CEO also noted that Delta is working closely with TSA on steps to minimize travel delays, including mobilizing Delta employees to perform non-essential aspects of the security process. "We strongly encourage our elected officials to do their very best to resolve their differences and get our government fully opened as quickly as possible," he said. ### Bottom Line on DAL Stock It's true that DAL stock is fairly cheap right now. The forward price-to-earnings multiple is at a mere 7x. What's more, the company has a decent dividend yield, at about 2.9%, and there continues to be strong cash flow. Last year, that came to about $6.9 billion. * 7 Stocks at Risk of the Global Smartphone Slowdown Wall Street is also upbeat on Delta Airlines stock, with the average price target at $67. This assumes about 37% potential upside from current levels. No doubt, this is all encouraging. But I still think there should be caution with DAL stock. Again, it's far from clear how the shutdown will turn out and there may be more competitive pressures across the airline industry. In other words, DAL stock could stay cheap, at least for the near term. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Should Delta Air Lines Stock Investors Expect Takeoff Or Turbulence? appeared first on InvestorPlace.
United Airlines Rose after Its Q4 Earnings(Continued from Prior Part)Share repurchasesUnited Continental (UAL) has always tried to enhance shareholders’ wealth through share repurchases. The company started its buyback program in 2015. As of
United Airlines easily topped Q4 earnings forecasts, sending shares roaring late Tuesday, after Delta Air Lines reported mixed Q4 results.
United Airlines Rose after Its Q4 Earnings(Continued from Prior Part)Utilization rateDisciplined capacity additions, promotional offers, and marketing strategies to drive traffic have helped United Airlines improve its utilization rate or load