American Airlines Stock Is Ready for Takeoff
Long lines, delays, shrinking legroom, and the dreaded three-ounce liquids rule: Perhaps the only thing more frustrating than modern air travel is trying to invest in airline stocks. “American is very attractively priced—around 0.2 times price to sales—is cash-flow positive, and it has good momentum,” says Ryan Kelley, chief investment officer and portfolio manager at Hennessy Funds, which counts the stock among the 10 largest holdings in its mid-cap portfolios. “These movements in airline stocks often do go together, so the fact that American has been lagging means there’s some catch-up it can do.”
Long lines, delays, shrinking legroom, and the dreaded three-ounce liquids rule: Perhaps the only thing more frustrating than modern air travel is trying to invest in airline stocks. “American is very attractively priced—around 0.2 times price to sales—is cash-flow positive, and it has good momentum,” says Ryan Kelley, chief investment officer and portfolio manager at Hennessy Funds, which counts the stock among the 10 largest holdings in its mid-cap portfolios. “These movements in airline stocks often do go together, so the fact that American has been lagging means there’s some catch-up it can do.”