American Airlines hit hard by the pandemic

The Corona Virus pandemic has reduced travel greatly and people are choosing to stay at homes to stay safe. The cases are still rising and with no fully approved medicine or cure, this pandemic has brought about difficult times for many companies. The travel sector is being highly affected by the same. The stocks of American Airlines have performed well in the stock market until this pandemic for once, brought traveling to a standstill. Even though there are no more lockdowns or curfews at most of the places, still the fear has not gone yet.

This week was quite rough for the stocks of American Airlines since, in five days, the stocks went down by -12.3%. This is a noteworthy percentage for all the investors looking up to invest. The current statistics of American Airlines Group Inc. (NASDAQ: AAL) are:

  • 52 Week Range:  $8.25 – 31.58
  • Average Volume:  62,856,544
  • Market Capital:  5.717 B

Is the American Airlines stock worth buying now?

If one just analyzes the present and the scenario of the very recent past, then it is clear that the company has incurred losses. No investor wants to put in money where chances of profit are low but if we think about the future, the company has chances of getting back on track.

As per the probability, there are high chances that the stock will be in a better position three months from now. However, this is just a probability, so one has to decide on investing very wisely. This stock might seem promising but it is not the only option left to invest. The investors can look for similar other better options and then choose the best as per their requirements.

The situation of Covid-19 in the future will be the main factor that will decide the progress of this stock. A smooth decline in the number of cases or the approval of an effective vaccine will boost up the stock. There will be chances that travel will steadily restore to normal and hence gradually, American Airlines will acquire its firm position in the stock market.

The stock prices are low as of now and to attract more and more investors, a hike in the prices is required. The market capital is also low and this was not the position of the stock one year ago. Also, there was no pandemic a year ago but now, when the world is facing this crisis, every firm needs some time to regain its original position in this volatile sector of the stock market.

As mentioned above, the chances suggest that the future will be better for American Airlines since slowly but steadily, many companies have again started progressing. Therefore, the situation remains speculative but the investors can still think about making a long-term investment in this company. A long-term investment is more secure and has more favorable prospects that the investors will make a profit.

About Travis Garlick 1822 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.