10 Undervalued Stocks with the Highest Upside Potential

3. American Airlines Group Inc. (NASDAQ:AAL)

Forward P/E Ratio: 5.53x

Upside Potential: 65%

Number of Hedge Fund Holders: 59

American Airlines (NASDAQ:AAL) is a large airline with in-country and out-of-country passenger services. American Airlines is seeing a strong recovery in air travel demand with growing passenger traffic and premium bookings fueling revenue.

American Airlines Group Inc. (NASDAQ:AAL) reported a Q4 2024 profit of $0.84 a share as revenue fell 17.3% year over year due to fuel cost fluctuations and macroeconomic headwinds. Trends in unit revenue were better and the company has been expanding transatlantic and Latin American routes in an attempt to capitalize on growth in overseas travel.

The carrier is investing in aircraft upgrades, premium product and service developments and digital innovations like AI-enabled route planning and personalized reservation flows. American Airlines is also simplifying debt and strengthening its balance sheet to improve long-term financial resilience.

Analysts have a target price of $21.50 and project a gain of 65% based on a current price of $13.03. April 2025’s earnings release will be punctuated by highlights of growth in capacity, profitability improvement and cost cutting.