AAL Should I Buy
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American Airlines Group Inc (AAL) is not a strong buy at the moment for a beginner investor with a long-term focus. While there are some positive catalysts, the company's financial performance, employee dissatisfaction, and lack of strong proprietary trading signals suggest holding off on investment for now.
The MACD is positive but contracting, RSI is neutral at 40.183, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock closed below its pivot level of 14.312, indicating potential weakness. Key support lies at 13.493, with resistance at 15.132.
Additionally, there is optimism for the airline sector in 2026, with expectations of easing jet fuel prices and rebounding demand.
Employee dissatisfaction is high, with protests and a vote of no confidence in the CEO. Operational disruptions, such as the FAA's flight suspension at El Paso, and declining net income (-83.22% YoY) and EPS (-78.87% YoY) are significant concerns. Hedge funds are also selling the stock heavily.
In Q4 2025, revenue increased by 2.48% YoY to $13.999 billion. However, net income dropped significantly by -83.22% YoY to $99 million, and EPS fell by -78.87% YoY to $0.15. Gross margin also declined slightly by -1.30% YoY to 61.53.
Analysts are generally optimistic, with several Buy ratings and raised price targets. Citi has a $21 target with a bullish outlook on the sector, while JPMorgan and Susquehanna also see potential upside. However, some firms, like TD Cowen, have lowered targets due to operational challenges.
