American Airlines has cancelled more than a dozen of its Boeing 737 jets after some of its newly installed overheads bins would not close before the take-off. The result was nearly 40 canceled flights.
The airline recently embarked on an interior remodeling project of its Boeing 737-800 called ‘Project Oasis’ that would add more seats, more power sockets and bigger overhead bins in order to increase revenue for each flight. AAL is also one of the many airlines who had recently adopted this strategy to enhance revenue.
The remodeling was done by a third party vendor called Everett, a Washington-based Aviation Technical Services licensed by the Federal Aviation Administration. Besides the overhead bins, other problems such as loose bolts were also flagged up.
Since the work completed on these Boeing aircrafts were not up to the mark, 12 more such jets were taken out of service to evaluate the quality of work done. So far, American has remodeled close to 70 of the 304 Boeing 737-800s it has in operation.
The Moving Average Convergence Divergence (MACD) for AAL turned positive on December 05, 2024. Looking at past instances where AAL's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
The 50-day moving average for AAL moved above the 200-day moving average on November 22, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where AAL advanced for three days, in of 281 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 198 cases where AAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
AAL broke above its upper Bollinger Band on December 05, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 SMR rating for this company is (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 Seasonality Score of (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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: P/B Ratio (0.000) is normal, around the industry mean (3.832). P/E Ratio (35.429) is within average values for comparable stocks, (41.336). Projected Growth (PEG Ratio) (0.200) is also within normal values, averaging (0.865). AAL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (0.187) is also within normal values, averaging (1.450).
The Tickeron Profit vs. Risk Rating rating for this company is (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 93, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of air transportation services for passengers and cargo
Industry Airlines