Saturday, April 25, 2015

American Airlines: Keep Until The Perception Changes


Summary

  • American Airlines reported record Q1 profits and margins.
  • The airline forecast record margins approaching 20% during Q2 despite several strong headwinds.
  • American remains the cheapest stock in the industry and the sector in general.
Not many stocks in the market trade substantially below market multiples, beat analyst estimates and forecast record Q2 margins. That's the case for most airlines and especially American Airlines Group (NASDAQ:AAL). Are the airlines still trading at low multiples due to the reality of the competitive sector or a perception of the past that won't go away?

Read the full article at Seeking Alpha.


Disclosure: Long AAL. Please review the disclaimer page for more details. 




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