Aal stock forecast technical chartists view the AAL stock

Technical chartists view the AAL stock forecast favorably as RSI readings remain neutral, reducing risk of overbought conditions. Breaks above $13.50 with firm volume could trigger a larger rally, aligning with patterns in the airline sector ETF performance. Among the group, American Airlines has experienced the most dramatic improvement in earnings expectations. Alaska Air Group and American Airlines have seen substantial upgrades to their earnings forecasts as well. Although AAL’s long-term up-trend took a brief pause last week following Wall Street’s negative reaction, American Airlines’ shares are still up ~80% over the past six months. Yet, the stock looks attractively priced from a forward-looking perspective. Specifically, consensus EPS stands at $2.38 for FY2025 and $3.07 for FY2026, implying annual growth rates of 21.6% and 28.8%, respectively. At these estimates, AAL trades at a forward P/E ratio of around 7.1x for 2025 and just 5.5x for 2026. Investors are watching closely for August traffic data as a potential driver for momentum in airline and broader transportation sector equities.