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5 Reasons Why You Should Invest in United Airlines (UAL) Stock
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United Airlines Holdings, Inc. (UAL - Free Report) is benefiting from a steady recovery in domestic and leisure air-travel demand.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes United Airlines an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse so far this year. Shares of United Airlines have gained 5.1% over the past three months, outperforming 4.4% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: United Airlines currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 60 days, the Zacks Consensus Estimate for United Airlines’ first-quarter 2023 earnings has moved up 90.57% year over year. For 2023, the company expects year-over-year earnings growth of more than 100%.
Positive Earnings Surprise History: United Airlines has an impressive earnings surprise history. The company delivered an earnings surprise of 7.77% in the last four quarters, on average.
Growth Factors: United Airlines is seeing a steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the third quarter of 2022. The third quarter was the second consecutive profitable quarter for UAL since the onset of the pandemic.
Management expects to report strong air-travel demand and pricing trends for the December-end quarter. In a bid to modernize its fleet, United Airlines placed the largest 787 Dreamliner order to Boeing in December 2022. UAL will purchase 100 Boeing 787 Dreamliners, with options to buy 100 more. UAL anticipates getting the delivery of the new widebody planes between 2024 and 2032.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Delta Airlines (DAL - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) . While Delta Airlines currently carries a Zacks Rank #2, Teekay Tankers sports a Zacks Rank #1.
Delta Airlines has an expected earnings growth rate of 67% for the current year. DAL delivered a trailing four-quarter earnings surprise of 7.90%, on average.
The Zacks Consensus Estimate for DAL’s current-year earnings has improved 11.5% over the past 90 days. Shares of DAL have gained 6.8% over the past three months.
Teekay Tankers has an expected earnings growth rate of 143.11% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have gained 14.4% over the past three months.
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5 Reasons Why You Should Invest in United Airlines (UAL) Stock
United Airlines Holdings, Inc. (UAL - Free Report) is benefiting from a steady recovery in domestic and leisure air-travel demand.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes United Airlines an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse so far this year. Shares of United Airlines have gained 5.1% over the past three months, outperforming 4.4% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: United Airlines currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 60 days, the Zacks Consensus Estimate for United Airlines’ first-quarter 2023 earnings has moved up 90.57% year over year. For 2023, the company expects year-over-year earnings growth of more than 100%.
Positive Earnings Surprise History: United Airlines has an impressive earnings surprise history. The company delivered an earnings surprise of 7.77% in the last four quarters, on average.
Growth Factors: United Airlines is seeing a steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the third quarter of 2022. The third quarter was the second consecutive profitable quarter for UAL since the onset of the pandemic.
Management expects to report strong air-travel demand and pricing trends for the December-end quarter. In a bid to modernize its fleet, United Airlines placed the largest 787 Dreamliner order to Boeing in December 2022. UAL will purchase 100 Boeing 787 Dreamliners, with options to buy 100 more. UAL anticipates getting the delivery of the new widebody planes between 2024 and 2032.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Delta Airlines (DAL - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) . While Delta Airlines currently carries a Zacks Rank #2, Teekay Tankers sports a Zacks Rank #1.
Delta Airlines has an expected earnings growth rate of 67% for the current year. DAL delivered a trailing four-quarter earnings surprise of 7.90%, on average.
The Zacks Consensus Estimate for DAL’s current-year earnings has improved 11.5% over the past 90 days. Shares of DAL have gained 6.8% over the past three months.
Teekay Tankers has an expected earnings growth rate of 143.11% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have gained 14.4% over the past three months.