(NYSE:AMR) AMR Corporation has high expectations for 2007. By years end, AMR is projected to have a P/E of 6.00 at its price today. Currently, their P/E ratio is around 42. This is some major growth for 2007. While, I am writing this AMR is up 2.21%. Of course, this is the day the DOW is currently up 104 points. After, a week of a minor slide in the markets.

Assuming, AMR Corporation does have the massive growth they expect. How much higher will the stock go from today’s price? At buying the stock at its price of 33.62/share. With earnings/share of 5.43 by years end. Now, we will have to figure out. What will the companies P/E be at the end of 2007? Today, the companies P/E is 42 and their forward P/E is 6.19.

What we are trying to do. Is figure out what P/E AMR be trading at by years end. To determine their future price. NOT what their forward P/E is. Next year, if AMR has a P/E of 12 with earnings/share of 5.43. The stocks price will be 65.16.

If you take AMR Corporation Ave P/E for the past ten years. You will get an average P/E of 6.08. This formula maybe skewed. Since, AMR has had negative P/E’s for many of the past years. So, I am going to take the industry’s current P/E average of 15. Just to be conservative. I’m going to take a few points off of the 15. Let’s say 11. So next year, I am officially saying, I think AMR Corporation price will hit 59.73 from 33.62. All assuming a earnings/share of 5.43