American Stock Performance

AAL -  USA Stock  

USD 16.30  0.46  2.74%

The firm shows a Beta (market volatility) of 2.1632, which signifies a somewhat significant risk relative to the market. Let's try to break down what American's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, American Airlines will likely underperform. Even though it is essential to pay attention to American Airlines historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. American Airlines Gp exposes twenty-one different technical indicators, which can help you to evaluate its performance. American Airlines has an expected return of -0.23%. Please be advised to confirm American Airlines downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if American Airlines performance from the past will be repeated at some point in the near future.

American Stock Performance 

 
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American Performance
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Over the last 90 days American Airlines Gp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in February 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders. ...more

American Price Channel

Quick Ratio0.84
Fifty Two Week Low15.02
Target High Price28.00
Fifty Two Week High26.09
Target Low Price5.00

American Airlines Relative Risk vs. Return Landscape

If you would invest  1,939  in American Airlines Gp on October 26, 2021 and sell it today you would lose (309.00)  from holding American Airlines Gp or give up 15.94% of portfolio value over 90 days. American Airlines Gp is generating negative expected returns assuming volatility of 3.1469% on return distribution over 90 days investment horizon. In other words, 27% of stocks are less volatile than American, and above 99% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon American Airlines is expected to under-perform the market. In addition to that, the company is 3.7 times more volatile than its market benchmark. It trades about -0.07 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.08 per unit of volatility.

American Airlines Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Airlines' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as American Airlines Gp, and traders can use it to determine the average amount a American Airlines' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0733

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Negative ReturnsAAL
Estimated Market Risk
 3.15
  actual daily
 
 27 %
of total potential
 
2727
Expected Return
 -0.23
  actual daily
 
 0 %
of total potential
 
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Risk-Adjusted Return
 -0.07
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Based on monthly moving average American Airlines is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Airlines by adding it to a well-diversified portfolio.

About American Airlines Performance

To evaluate American Airlines Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Airlines generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Airlines stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment(48.01) (49.27) 
Return on Average Assets(0.13) (0.13) 
Return on Average Equity 1.76  1.90 
Return on Invested Capital(0.12) (0.12) 
Return on Sales(0.53) (0.54) 
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. American Airlines Group Inc. was founded in 1930 and is headquartered in Fort Worth, Texas. American Airlines operates under Airlines classification in the United States and is traded on NASDAQ Exchange. It employs 119800 people.

Things to note about American Airlines

Checking the ongoing alerts about American Airlines for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for American Airlines help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

American Airlines Alerts

Equity Alerts and Improvement Suggestions

American Airlines generated a negative expected return over the last 90 days
American Airlines has high historical volatility and very poor performance
American Airlines has high likelihood to experience some financial distress in the next 2 years
The company reported the last year's revenue of 24.48 B. Reported Net Loss for the year was (3.24 B) with loss before taxes, overhead, and interest of (5.54 B).
American Airlines Gp has about 14.54 B in cash with (959 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 22.45, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Roughly 56.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.nasdaq.com: Want Low-Stress Stocks in 2022 Take It Easy With These Renewable Energy Dividend Stocks - Nasdaq
Please continue to Trending Equities. Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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When running American Airlines price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine American Airlines value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.