AAL stock down 12.5% in a month due to various factors, bearish guidance for Q1 2025

From Zacks Investment Research: 2025-02-17 16:04:12

American Airlines (AAL) stock has dropped 12.5% over the past month due to loss of business travelers, a mid-air mishap, and high labor costs. This decline contrasts with United Airlines (UAL) and Delta Air Lines (DAL) experiencing strong winter demand. AAL’s bearish guidance for Q1 2025 projects a loss of 20-40 cents per share, disappointing investors. Despite an improved Q4 2024 performance, AAL’s full-year 2025 outlook is below expectations. A recent plane collision further challenges the airline. However, AAL’s valuation is attractive with a forward P/S ratio of 0.18 and a Value Score of A. Investors may find long-term potential in AAL due to debt reduction efforts and partnership agreements.



Read more at Zacks Investment Research: AAL Stock Down 12.5% in a Month: Is it a Golden Buying Opportunity? – February 17, 2025