Stock Price & Analysis

Sell AAL as it is in a downtrend with oversold conditions. Consider selling if the bearish trend continues.

American Airlines (AAL) stock is expected to trade between $10.50 and $14.00 in 2025, driven by industry-wide challenges and economic uncertainty. The stock is currently under pressure due to Delta's revised guidance and broader market fears, with AAL dropping 8.7% recently. Technical indicators suggest oversold conditions, but bearish momentum persists.

The S1 support level for AAL Stock is $10.92 ,The R1 resistant level for AAL Stock is $14.04.

As of the end of day on 2025-03-17, the price of AAL Stock was $11.

The target price for AAL Stock according to analyst rating is 22.18, with the highest price target at 30.00 and the lowest at 18.00. Analysts have a Moderate Buy rating on AAL Stock overall.

The market cap of AAL is $7.1B.

Analysis and Insights

Valuation Metrics:

American Airlines (AAL) currently has a P/E ratio of 21.46, which is higher than the industry average, suggesting potential overvaluation. The EV/EBITDA ratio of 5.61 also indicates a premium valuation compared to its peers.

Recent Stock Performance:

The stock closed at $11.46 on March 11, 2025, near its 52-week low, with a significant volume of 109,911,363 shares traded. The stock has experienced a decline of 8.32% during regular market hours, reflecting broader market pressures and negative sentiment.

News Impact and Market Trends:

Recent events, such as the fatal collision involving an American Airlines regional jet and the subsequent calls for safety system compliance, have weighed on investor sentiment. Additionally, the travel industry is facing challenges, with airlines lowering revenue forecasts due to weak demand, contributing to a decline in travel-focused ETFs.

Conclusion:

Given the high valuation metrics, recent stock underperformance, and negative industry trends, AAL appears overvalued. Investors should exercise caution and consider these factors before making investment decisions.

American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a network air carrier. The Company, together with its regional airline subsidiaries and third-party regional carriers, operates under the American Eagle brand, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo. Its cargo division provides a range of freight and mail services, with facilities and interline connections available across the globe. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc. It operates approximately 965 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operated an additional 556 regional aircraft.

The price prediction for AAL stock by 2030 is expected to reach $25 to $35. This forecast is based on the company's potential recovery from current challenges, including regaining corporate travel market share and benefiting from its exclusive credit card partnership. Analysts anticipate long-term growth driven by improved cash flow and strong air travel demand.

AAL has a total of 132100 employees.