No one is going to confuse American Airlines Group Inc (NASDAQ:AAL) as a stable, confidence-inspiring enterprise. On a year-to-date basis, AAL stock has tumbled 31% — and it's not just due to technical nuances. Primarily, the business suffers from its highly leveraged balance sheet, exceeding that of competitors like Alaska Air Group Inc (NYSE:ALK) and Southwest Airlines Co (NYSE:LUV). Adding to the woes are broader fears tied to possible stagflation.
As a result, you're not going to find too many experts pounding the table on AAL stock. It's cheap but presumably, most investors would argue that it's cheap for a reason. But while American Airlines might not fit the bill as a long-term candidate, it could be an intriguing case for a possible dead-cat bounce.
