12 Most Undervalued Stocks to Invest in for Under $20

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

Forward P/E as of January 17: 7.3x

Share Price as of January 17: $18.27

Number of Hedge Fund Holders: 41

American Airlines Group Inc. (NASDAQ:AAL) operates as a network air carrier. Jefferies upgraded the company’s stock to “Buy” from “Hold,” raising its price target to $20 from $12.1. Its analysts said American Airlines Group Inc. (NASDAQ:AAL) is expected to see a significant surprise to the upside in 2025 as a result of corporate share recapture, lower capacity, capex, and a credit card partnership with Citi. The company continues to focus on fleet simplification, which can result in improved unit costs and operational efficiency.

The exclusive co-branded credit card deal with Citi demonstrates a significant opportunity for American Airlines Group Inc. (NASDAQ:AAL) to improve financial performance and strengthen its competitive position. This strategic partnership is expected to drive substantial benefits for the airline. The enhanced cash flow from the credit card deal is expected to accelerate American Airlines Group Inc. (NASDAQ:AAL)’s deleveraging efforts, which can improve its balance sheet and credit profile over time.

Furthermore, it can result in more favorable financing terms and enhanced financial flexibility. The co-branded card program can translate into a tool for customer retention and acquisition, fueling increased loyalty and repeat business among American Airlines Group Inc. (NASDAQ:AAL)’s passenger base. The airline is expected to see working capital benefits, which can improve overall liquidity position and operational flexibility.