🥩Your weekly free stock picks from BeefySignals!

🥩 BeefySignals Oversold Airline & Utility Breakout!
🔍 Recommended date: February 6, 2026

🥩 Stock: American Airlines Group Inc.
💹 Ticker: AAL
💼 Sector: Industrials
🎯 Estimated return: 1.09% – 2.24%
📅 Date of maximum return: June 1, 2026 (115 days left)

What's the setup:

Technical Signal:
Our system detected a mean-reversion opportunity: the stock closed below its 12-day exponential moving average and has declined more than 10% over the past 20 days. These indicators typically signal short-term oversold conditions that may create attractive entry points when business fundamentals remain solid.

What Happened:
American Airlines missed Q4 2025 earnings expectations (adjusted EPS of $0.16 vs. $0.38 expected), triggering a sharp selloff. However, the miss was driven by a one-time event: a government shutdown that disrupted bookings in November and December, costing the airline $325 million in revenue.

Why It Matters:

• Strong 2026 guidance: Management projects EPS of $1.70 to $2.70 for 2026
• Bookings surging: January 2026 system-wide revenue up double digits year-over-year
• Premium strength: Premium cabin revenue outpacing main cabin by 7 percentage points
• Q1 momentum: Expected revenue growth of 7 to 10%
• Cash generation: Over $2 billion in projected free cash flow for 2026
• Debt reduction: On track to reduce debt below $35 billion by year-end

The Opportunity:
The market's reaction appears to be an overreaction to temporary disruptions rather than fundamental deterioration, creating a potential mean-reversion setup.

🥩 Stock: Edison International
💹 Ticker: EIX
💼 Sector: Utilities
🎯 Estimated return: 2.24% – 5.63%
📅 Date of maximum return: June 1, 2026 (115 days left)

What's the setup:

Technical Signal:
Edison International gapped up by 0.4 standard deviations and closed above its upper Bollinger Band. These momentum indicators suggest institutional buying interest and strong short-term price strength.

Recent Performance:
The company delivered impressive Q3 2025 results with core EPS of $2.34, beating estimates by 8.3%. Revenue growth was driven by favorable regulatory rate decisions and infrastructure investments.

Why It Matters:

• Guidance reaffirmed: 2025 core EPS target of $5.95 to $6.20 maintained
• Long-term growth: 5 to 7% annual core EPS growth through 2028, targeting $6.74 to $7.14
• Q4 expectations: Analysts forecast EPS of $1.49, up 41.9% year-over-year
• 2025 full-year: Expected EPS of $6.10, up 23.7%
• Strategic investments: Heavy spending on grid modernization, wildfire mitigation, and infrastructure resilience
• Analyst support: "Moderate Buy" rating with average price target of $65.43 (9.2% upside)

The Opportunity:
Strong regulatory support, consistent earnings beats, and momentum breakout create a utility play with both income and growth potential.

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Regards,

The BeefySignals Team

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