Our daily stock pick, stock idea for today is American Airlines Group Inc. (AAL), with a close of 28.33 on February 19, 2020. This is not an investment recommendation, a stock to buy or a stock to sell, we will be mentioning daily a stock for further financial research and financial analysis.
American Airlines Group Inc (AAL) stock technical analysis
Stock market data : Finviz.com
American Airlines Group Inc (AAL) stock fundamental analysis
Key points about this daily stock pick:
P/E ratio 7.45
Forward P/E 4.88
Dividend yield : 1.41%
Market cap: 12.79B
5-year trend for revenue is slightly up
Net income increase for the past two consecutive years
EPS increase for the past two consecutive years
Inconsistent free cash flow for the 5-yr trend, negative for the FY 2017, FY 2018
There are many stock trading tips, stock investing advice for prudent trading and not just gambling or speculating. Whether you trade the stock market, the forex market or any other financial market, our stock trading top tip is : do not chase the market.
Stock trading fomo effect
The fomo effect (fear or missing out) when trading stocks, equities amplifies in almost all cases bubbles in financial assets, and prices get disconnected from their fundamentals. Take for example the Tesla stock, today it is up to 942.31+83.91 (+9.78%). The reason is that some analyst hiked its priced target. This is not the best time to trade the Tesla stock as a huge rally has already taken place.It is too risky. If you add the fact that Tesla stock to our financial analysis is way too overvalued, then this game trading stocks like Tesla is just speculation.
Stocks to buy, stocks to sell
There are always opportunities about stocks to buy, stocks to sell. The fomo effect is too dangerous and is a behavioral bias in investing and trading. Apply risk management, fundamental analysis and use technical analysis to buy stocks with good fundamentals which are undervalued, sell overvalued stocks, or do not just get carried away buying stocks because they move up, for no obvious reason, not a catalyst or something related to financial results and performance.