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Is American Airlines (AAL) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Airlines (AAL - Free Report) . AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.26. This compares to its industry's average Forward P/E of 8.85. Over the past 52 weeks, AAL's Forward P/E has been as high as 10.44 and as low as 5.34, with a median of 7.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AAL has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.72.
Finally, investors will want to recognize that AAL has a P/CF ratio of 5.06. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AAL's P/CF compares to its industry's average P/CF of 5.83. Within the past 12 months, AAL's P/CF has been as high as 7.09 and as low as 4.19, with a median of 5.29.
These are only a few of the key metrics included in American Airlines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AAL looks like an impressive value stock at the moment.
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Is American Airlines (AAL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Airlines (AAL - Free Report) . AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.26. This compares to its industry's average Forward P/E of 8.85. Over the past 52 weeks, AAL's Forward P/E has been as high as 10.44 and as low as 5.34, with a median of 7.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AAL has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.72.
Finally, investors will want to recognize that AAL has a P/CF ratio of 5.06. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. AAL's P/CF compares to its industry's average P/CF of 5.83. Within the past 12 months, AAL's P/CF has been as high as 7.09 and as low as 4.19, with a median of 5.29.
These are only a few of the key metrics included in American Airlines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AAL looks like an impressive value stock at the moment.