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United Airlines (UAL) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, United Airlines (UAL - Free Report) closed at $43.89, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.09% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.22%.

Heading into today, shares of the airline had gained 7.44% over the past month, lagging the Transportation sector's gain of 10.41% and outpacing the S&P 500's gain of 5.55% in that time.

Investors will be hoping for strength from United Airlines as it approaches its next earnings release. The company is expected to report EPS of $1.99, up 224.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.1 billion, up 47.67% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $44.83 billion. These totals would mark changes of +114.28% and +81.97%, respectively, from last year.

Any recent changes to analyst estimates for United Airlines should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 13.39% higher within the past month. United Airlines is currently a Zacks Rank #2 (Buy).

Digging into valuation, United Airlines currently has a Forward P/E ratio of 22.24. This valuation marks a premium compared to its industry's average Forward P/E of 15.89.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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