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United Airlines (UAL) Gains But Lags Market: What You Should Know

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United Airlines (UAL - Free Report) closed the most recent trading day at $43.59, moving +1.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.76%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.

Heading into today, shares of the airline had lost 13.56% over the past month, lagging the Transportation sector's loss of 6.5% and the S&P 500's loss of 5.94% in that time.

Wall Street will be looking for positivity from United Airlines as it approaches its next earnings report date. On that day, United Airlines is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 112.97%. Our most recent consensus estimate is calling for quarterly revenue of $11.38 billion, up 50.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.23 per share and revenue of $52.79 billion. These totals would mark changes of +226.59% and +17.44%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 10.11% higher within the past month. United Airlines currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 5.24 right now. Its industry sports an average Forward P/E of 10.97, so we one might conclude that United Airlines is trading at a discount comparatively.

Also, we should mention that UAL has a PEG ratio of 0.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.39 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.

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