Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
American Airlines' Bumpy Ride: One company that has been a solid investment in the past two years has been American Airlines Group Inc (NASDAQ:AAL).
American and other travel stocks experienced a near worst-case scenario when the COVID-19 breakout occurred in early 2020. Travel demand fell to nearly 0% during the worst of the pandemic.
At the beginning of 2020, American shares were trading at around $30. By the beginning of March, the stock had dropped to around $19 after news of the virus spreading in China prompted concerns about a U.S. pandemic. On March 27, airlines received $25 billion in federal bailouts. On April 3, American shares dropped below $10. The stock ultimately bottomed at $8.25 on May 14.
Airlines got another $15 billion in government bailouts in December. By that time, vaccine optimism had boosted American’s share price back up to above $15.
Also Read: Why The Airline Stock Rebound Could Continue
American Airlines In 2022, Beyond: American Airlines eventually made it as high as $26.09 in March 2021 before pulling back to $16.93 today.
Still, investors who bought American Airlines stock on the day it hit its pandemic low and held on have generated a nice return on their investment. In fact, $1,000 in American Airlines stock bought on May 14, 2020, would be worth about $1,859 today.
Looking ahead, analysts are expecting American Airlines stock to maintain its altitude in the next 12 months. The average price target among the 17 analysts covering the stock is $18, suggesting just 6.1% upside from current levels.
