In a welcome move, American Airlines saw its Relative Strength Rating rise to 74 on Thursday, up from 69 the day before. The upgrade is not a big surprise. The airlines group is rising rapidly this year and analysts see stronger growth ahead as the pandemic recedes and consumers take to the skies again. American Airlines stock rose Thursday afternoon.
American Airlines Stock Eyes Top Performers Group
The 74 RS Rating shows that American Airlines stock is outperforming 74% of all stocks on price performance. It's a good rating, but not yet a great one. When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. Research shows that stocks with an 80 or higher RS Rating are the ones most likely to soar. See if American can rise that six points into a higher percentile.
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Earnings Reverse Their Flight Path
Fort Worth, Texas-based American Airlines reported $1.17 earnings per share last quarter, reversing from a $1.42 per share loss the same quarter a year ago. The prior two quarters it also posted a profit, reversing from a year-ago loss, resulting in what could be viewed as 145% and 170% EPS growth, respectively. Revenue last quarter grew 40% to $13.19 billion.
Among its other key ratings American Airlines has a 77 EPS Rating and a 79 Composite Rating, an amalgam of five other key ratings. And, bullishly, it carries a B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating means institutional investors like ETFs and mutual funds are fairly aggressive buyers of its stock.
American Airlines stock fell to an 11.65 low in early October amid the 2022 bear market. It rose about 0.7% to around 16.38 Thursday afternoon, up 40% in less than four months. American hasn't formed a fresh base like a three-weeks-tight pattern or a flat base, but see if the stock goes on to offer and clear a proper buy point.
American Airlines stock earns the No. 7 rank among its peers in the Transportation-Airline industry group. Delta Air and United Airlines are also among the group's highest-rated stocks.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
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