American Airlines: Earnings Panic, But Fundamentals and Cash Flow Make This a Compelling Rebound Trade
Shares of American Airlines plunged after a disappointing quarter, handing the market a rare chance to buy a major U.S. network carrier at bargain prices. With a market cap near $9.2 billion, positive free cash flow, an EV/EBITDA of ~8.2 and a FCF yield approaching 10%, the risk-reward favors a mid-term long. This piece lays out why, how to trade i…