American Airlines Group Inc. (NASDAQ:AAL) is considered one of the most undervalued travel stocks to buy by hedge funds. Citi placed a Buy rating on AAL with a price target of $21 after positive fiscal Q4 reports. TD Cowen, however, lowered the price target to $17 due to Winter Storm Fern.

AAL reported record Q4 revenue of $14.0 billion despite a $325 million impact from the government shutdown. The company saw sequential improvement in passenger unit revenue performance in international entities year-over-year compared to Q3. AAL also reduced total debt by $2.1 billion in 2025.

American Airlines operates as a network carrier offering air transportation services for cargo and passengers. The company’s geographical segments include Domestic, Latin America, Atlantic, and Pacific. Despite potential investment in AAL, some AI stocks may offer greater upside potential with less downside risk.

For more insights on potential stocks, check out reports on stocks that could double in 3 years and hidden AI stocks to buy now. Disclosure: None. Originally published on Insider Monkey.

Read more at Yahoo Finance: Citi Adds An “Upside 90-day Catalyst Watch” on American Airlines Group (AAL)