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United Airlines (UAL) Exceeds Market Returns: Some Facts to Consider
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In the latest market close, United Airlines (UAL - Free Report) reached $39.80, with a +0.91% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.46%.
The airline's stock has climbed by 12.24% in the past month, exceeding the Transportation sector's gain of 4.87% and the S&P 500's gain of 7.62%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is forecasted to report an EPS of $1.73, showcasing a 29.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.58 billion, indicating a 9.49% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.75 per share and revenue of $53.67 billion, which would represent changes of +286.9% and +19.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.81% lower within the past month. United Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note United Airlines's current valuation metrics, including its Forward P/E ratio of 4.05. For comparison, its industry has an average Forward P/E of 7.47, which means United Airlines is trading at a discount to the group.
It's also important to note that UAL currently trades at a PEG ratio of 0.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.28.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 207, this industry ranks in the bottom 18% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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United Airlines (UAL) Exceeds Market Returns: Some Facts to Consider
In the latest market close, United Airlines (UAL - Free Report) reached $39.80, with a +0.91% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.46%.
The airline's stock has climbed by 12.24% in the past month, exceeding the Transportation sector's gain of 4.87% and the S&P 500's gain of 7.62%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is forecasted to report an EPS of $1.73, showcasing a 29.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.58 billion, indicating a 9.49% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.75 per share and revenue of $53.67 billion, which would represent changes of +286.9% and +19.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.81% lower within the past month. United Airlines is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note United Airlines's current valuation metrics, including its Forward P/E ratio of 4.05. For comparison, its industry has an average Forward P/E of 7.47, which means United Airlines is trading at a discount to the group.
It's also important to note that UAL currently trades at a PEG ratio of 0.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.28.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 207, this industry ranks in the bottom 18% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.