American Airlines stock shot up 64% from an 11.65 low on Oct. 3, 2022 to a 19.08 high on July 13 this year. Then it went into a midsummer slumber. Along the way though it formed a nice cup-with-handle base. It remains to be seen whether it can break out from there, but on Tuesday American Airlines stock got another upgrade to its Relative Strength (RS) Rating, from 67 to 71.
American Airlines Stock Among Tops In Profit Growth
The 71 RS Rating puts American Airlines stock in the top 30% of stocks for price performance. Among its other ratings American stock has an 82 Earnings Per Share Rating out of 99, putting it in the top 18% of companies for profit growth. Its Composite Rating of 71 puts it in the top 30% overall. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria.
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American Airlines stock continues to drift amid the current market uncertainty. It's one for a watchlist though as people emerge from the pandemic to travel more.
Earnings Reversed From Loss To Soaring Growth
Second quarter earnings, reported on July 20, grew 153% to $1.92 per share, on a 5% rise in revenue to $14.1 billion. It's profit growth the prior three quarters reversed from a loss last year to rise 170%, 182% then 102%. The carrier's revenue growth the prior three quarters was 50%, 40% then 37%.
American Airlines stock holds the No. 6 rank among its peers in the 20-company Transportation-Airline industry group. United Airlines and Copa Holdings are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one metric to watch closely is relative price strength.
IBD's unique RS Rating tracks market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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