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United Airlines (UAL) Stock Drops Despite Market Gains: Important Facts to Note
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United Airlines (UAL - Free Report) closed the latest trading day at $40.56, indicating a -1% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
Shares of the airline have appreciated by 7.84% over the course of the past month, outperforming the Transportation sector's gain of 7.8% and the S&P 500's gain of 5.28%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is forecasted to report an EPS of $1.63, showcasing a 33.74% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $13.58 billion, up 9.49% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.71 per share and revenue of $53.67 billion, indicating changes of +285.32% and +19.38%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, United Airlines possesses a Zacks Rank of #3 (Hold).
With respect to valuation, United Airlines is currently being traded at a Forward P/E ratio of 4.22. For comparison, its industry has an average Forward P/E of 7.04, which means United Airlines is trading at a discount to the group.
We can additionally observe that UAL currently boasts 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 the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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) Stock Drops Despite Market Gains: Important Facts to Note
United Airlines (UAL - Free Report) closed the latest trading day at $40.56, indicating a -1% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
Shares of the airline have appreciated by 7.84% over the course of the past month, outperforming the Transportation sector's gain of 7.8% and the S&P 500's gain of 5.28%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is forecasted to report an EPS of $1.63, showcasing a 33.74% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $13.58 billion, up 9.49% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.71 per share and revenue of $53.67 billion, indicating changes of +285.32% and +19.38%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, United Airlines possesses a Zacks Rank of #3 (Hold).
With respect to valuation, United Airlines is currently being traded at a Forward P/E ratio of 4.22. For comparison, its industry has an average Forward P/E of 7.04, which means United Airlines is trading at a discount to the group.
We can additionally observe that UAL currently boasts 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 the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.3.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.