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Why American Airlines Group (AAL) is Such a Great Value Stock Pick Right Now

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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; American Airlines Group Inc. (AAL - Free Report) .

American Airlines Group in Focus

AAL may be an interesting play thanks to its forward PE of 6.5, its P/S ratio of 0.3, and its decent dividend yield of 1.4%. These factors suggest that American Airlines Group is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that AAL has decent revenue metrics to back up its earnings.

American Airlines Group Inc. PE Ratio (TTM)

But before you think that American Airlines Group is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 0.9% in the past 30 days, thanks to three upward revisions in the past month compared to none lower.

This estimate strength is actually enough to push AAL to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

So really, American Airlines Group is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

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