It has been a very active earnings season, and this week is expected to be even busier. Today, I want to talk about my latest recommendation, American Airlines Group Inc. (AAL), says Cliff Droke, editor of Cabot Turnaround Letter.
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Although the stock came under mild selling pressure last week on Thursday in an industry-wide pullback, AAL is holding up as a solid mid-stage turnaround with additional potential in the coming quarter. The firm beat top- and bottom-line expectations in its recent Q3 earnings report. It also ended the quarter with $12 billion in total available liquidity, which should help accelerate the company’s turnaround efforts.
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American Airlines is on track to reduce total debt from peak levels by $15 billion by year-end 2025. Full-year adjusted earnings per diluted share are also expected to be between $1.35 and $1.60, versus the $1.31 consensus estimate. I like the way the stock has been acting so far during the initial stages of the turnaround.
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