At its current price of $16.49 per share, American Airlines (NASDAQ:AAL) stock is still relatively close to its 52-week low of $8.25. Investors may be tempted to pick up AAL stock because of an assumed impending price bump as flights ramp up.Source: GagliardiPhotography / Shutterstock.com But Main street investors like you and I first need to look at the company's past history, liquidity, and valuation before that. In a beleaguered industry, facing overcapacity for some time to come, and as a laggard with a weak balance sheet, AAL stock is one of the last trades investors should be considering. Recent news only solidifies that notion. More Bad News for American AirlinesOn May 27, American Airlines released a management note outlining their continuing priorities during the pandemic. Management listed adequate cash, a reduction of cash burn rate, and restoring confidence in air travel as the three goals.InvestorPlace - Stock Market News, Stock...
(Bloomberg) -- U.S. equity futures rose alongside global stocks on Friday as investors cheered the latest breakthrough in trade negotiations between America and China and the start of stimulus talks in Europe. Treasuries edged lower.Contracts on the three main U.S. stock gauges pointed to a strong open on Wall Street as reports that China plans to accelerate purchases of American farm goods to comply with the phase one trade deal boosted risk appetite. In Europe, attention turned to negotiations over the EU’s proposed 750 billion-euro ($840 billion) program to help economies rebound from lockdowns, which helped send the Stoxx 600 Index up as much as 1.2% and strengthened the euro.Wirecard AG shares bucked the trend, extending their free-fall into a second day as the German payments company faced a potential cash crunch and Chief Executive Officer Markus Braun resigned.After a brief swoon, equity markets are back in rally mode as investors...
It's been an awful year for the American banking sector. Even prior to the novel coronavirus, financials had been underperforming. Investors have wanted growth stocks. And bank earnings haven't been doing much of that; the Fed's low interest rate policy has curtailed profit growth and thus sent investors fleeing. Bank of America (NYSE:BAC) stock hasn't been spared.Source: 4kclips / Shutterstock.com Then the coronavirus hit and added a new angle to the problems. Now the banks have both a profitability problem and a risk problem. It's unclear how badly the economic crisis will hit banking profits, but investors have assumed the worst and ran for cover. All of which has left Bank of America stock down 30% from recent highs. Too Much Negativity Priced InThere are two major concerns around bank stocks now -- credit losses and structural decline. On credit losses, it makes sense why people are worried. Banks were at...
Opinions on Delta Air Lines (NYSE:DAL) come down to only one thing. How do you feel about a possible second wave of the novel coronavirus? If you watch Delta stock, the answer seems to be that investors are not that concerned. The stock is up over 40% since collapsing in March. This is despite that the stock posted poor earnings in April and the numbers are unlikely to be better when the company reports in July.Source: Markus Mainka / Shutterstock.com The simple answer is that air traffic trends are improving, but only if you count improvement as being not a complete disaster. As Luke Lango cited in a recent InvestorPlace article, total traveler throughput on a year-over-year basis is still down 79% as of mid-June.I'm optimistic by nature. So, I want to believe the narrative that by the fourth quarter, airline traffic will be measurably increasing. But I'm struggling to do...
