The U.S Transportation Department is likely to allow a tentative agreement for a joint venture between American Airlines and Qantas Airways as well as granting antitrust immunity. The order is likely to include conditions to protect competition and allow for government oversight of the venture.
Earlier in 2016 during the Obama administration, the same application intended to cover U.S, Australia, and New Zealand was rejected over opposition from rival carriers like Hawaiian Airlines Inc and JetBlue Airways Corp (JBLU).
But this time the airlines have made a compelling case that included strong arguments in favor of coordination of price and schedules and unlocking of up to $310 million annually in consumer benefits. The application even threatened to cancel services, between Sydney and Dallas for Qantas and Los Angeles, Sydney and Auckland for American Airlines, if it was rejected.
The revised application also factored in the code sharing facility with other carriers, a process in which multiple publish and advertise a single flight under their own airline number. This leads to a reduction in prices and an improvement in service quality. The application argued that the joint venture has the potential to generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
New routes for Qantas could include non-stop flights from Brisbane to Chicago, Dallas or Seattle.
The 50-day moving average for AAL moved below the 200-day moving average on May 08, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Moving Average Convergence Divergence Histogram (MACD) for AAL turned negative on May 24, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AAL broke above its upper Bollinger Band on May 17, 2023. 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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 65 cases where AAL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on AAL as a result. In of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
AAL moved above its 50-day moving average on May 25, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AAL crossed bullishly above the 50-day moving average on May 16, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AAL advanced for three days, in of 300 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 152 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 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 fair valued 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 (74.530). P/E Ratio (5.258) is within average values for comparable stocks, (21.591). Projected Growth (PEG Ratio) (0.080) is also within normal values, averaging (0.447). Dividend Yield (0.000) settles around the average of (0.041) among similar stocks. P/S Ratio (0.180) is also within normal values, averaging (0.970).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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 (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