American Airlines Group Inc. (NASDAQ:AAL) is one of the Best Cheap Stocks to Buy Right Now. American Airlines released its Q4-2025 results last January 27, which showed record fourth-quarter and full-year revenue of $14 billion and $54.6 billion, respectively. The strong numbers came despite an estimated $325 million hit from the government shutdown. In addition to higher revenue, the company was also able to reduce its net debt by $2.1 billion.
Alexey Y. Petrov/Shutterstock.com Moving forward, American Airlines’ CEO Robert Isom says the company is “positioned for significant upside in 2026.” He projects total revenue to grow 7-10% in the 1st quarter of 2026. As for earnings, EPS is expected to be ~$1.70 to $2.70 per share, which is 10x to 16x of 2025’s results. The (1) above consensus Q4 results, (2) strong management guidance for 2026, and (3) reduction in debt were key reasons why BMO Capital raised its target price from $16.75 up to $17.00 on January 28. The firm also added that if the demand momentum from January continues, the top end of management’s 2026 guidance could be in play. On the same day, JP Morgan also raised their target price (from $20 to $22) after updating their model post earnings report. Still on the topic of target prices, CNN’s data shows that 15 out of 28 analysts (~54%) covering AAL have a “Buy” rating on the company, 12 (~43%) have a “Hold” rating, with only one (~4%) having a “Sell” recommendation. The median target price is $17.32 (with a high of $22.00), implying an upside of 27.30% (61.65% if using the highest estimate). American Airlines Group Inc. (NASDAQ:AAL), through its subsidiaries, offers passenger and cargo air transportation services in the United States, Latin America, the Atlantic, and the Pacific. While we acknowledge the potential of American Airlines Group Inc. (NASDAQ:AAL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy. Disclosure: None. This article is originally published at Insider Monkey.
