American Airlines ( AAL, $14.76) will increase July flights

American Airlines   said it would increase July flights, with lockdown restrictions gradually easing.  

The air carrier  said that  it planned to fly 55% of its domestic schedule and 20% of international flights in July, compared with last year's capacity. 

In June, the company is operating 25% of its domestic schedule. American flew just 20% in May.

“Our July schedule includes the smallest year-over-year capacity reduction since March", said Vasu Raja, senior vice president of network strategy. Raja mentioned “a slow but steady rise in domestic demand”.

Last week, American Airlines said it planned to cut its management and support staff by about -30%.

AAL in +6.66% Uptrend, growing for three consecutive days on June 03, 2020

As a Bullish sign, keep an eye on this company's ticker for future growth. Considering data from situations where AAL advanced for three days, in 218 of 316 cases, the price rose further within the following month. The odds of a continued Uptrend are 69%.

Current price $14.67 crossed the resistance line at $14.24 and is trading between $24.74 support and $14.24 resistance lines. Throughout the month of 05/01/20 - 06/03/20, the price experienced a +11% Uptrend, while the week of 05/27/20 - 06/03/20 shows a -1% Downtrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on May 26, 2020. Traders may consider buying the ticker or exploring call options. In 53 of 77 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 69%.

The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 29 of 45 similar backtested cases where AAL's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 64%.

Bearish Trend Analysis

The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 40 of 55 cases where AAL's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 73%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 33 of 42 cases where AAL's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 79%.

The Aroon Indicator entered a Downtrend today. In 150 of 229 cases where AAL Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 66%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 75%. During the last month, the daily ratio of advancing to declining volumes was 1.63 to 1.

The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AAL's P/B Ratio (-1.90) is slightly lower than the industry average of (1.57). AAL has a moderately low P/E Ratio (2.63) as compared to the industry average of (10.78). Projected Growth (PEG Ratio) (0.30) is also within normal values, averaging (1.63). Dividend Yield (1.39) settles around the average of (1.04) among similar stocks. AAL's P/S Ratio (0.12) is slightly lower than the industry average of (0.47).

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. AAL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AAL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

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