Back to top

Image: Bigstock

United Airlines (UAL) Ascends But Remains Behind Market: Some Facts to Note

Read MoreHide Full Article

In the latest trading session, United Airlines (UAL - Free Report) closed at $42.42, marking a +0.21% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.59% for the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.

The the stock of airline has risen by 5.77% in the past month, lagging the Transportation sector's gain of 8.79% and overreaching the S&P 500's gain of 5.16%.

The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. 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 $13.53 billion, up 9.14% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.67 per share and a revenue of $53.64 billion, signifying shifts of +283.73% and +19.32%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for United Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. United Airlines currently has a Zacks Rank of #3 (Hold).

Digging into valuation, United Airlines currently has a Forward P/E ratio of 4.38. This expresses a discount compared to the average Forward P/E of 7.58 of its industry.

It is also worth noting that UAL currently has a PEG ratio of 0.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Airline industry stood at 0.31 at the close of the market yesterday.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 25% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow UAL in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Airlines Holdings Inc (UAL) - free report >>

Published in