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United Airlines (UAL) Laps the Stock Market: Here's Why
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The latest trading session saw United Airlines (UAL - Free Report) ending at $44.05, denoting a +1.36% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the airline had gained 7.34% in the past month. In that same time, the Transportation sector gained 3.14%, while the S&P 500 gained 2.99%.
Analysts and investors alike will be keeping a close eye on the performance of United Airlines in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.50, showcasing a 20.63% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.42 billion, up 8.66% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.76 per share and a revenue of $57.47 billion, signifying shifts of -2.89% and +6.99%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.65% higher. United Airlines is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, United Airlines is currently exchanging hands at a Forward P/E ratio of 4.45. This valuation marks a discount compared to its industry's average Forward P/E of 8.6.
Also, we should mention that UAL has a PEG ratio of 0.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.56.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Airlines (UAL) Laps the Stock Market: Here's Why
The latest trading session saw United Airlines (UAL - Free Report) ending at $44.05, denoting a +1.36% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the airline had gained 7.34% in the past month. In that same time, the Transportation sector gained 3.14%, while the S&P 500 gained 2.99%.
Analysts and investors alike will be keeping a close eye on the performance of United Airlines in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.50, showcasing a 20.63% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.42 billion, up 8.66% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.76 per share and a revenue of $57.47 billion, signifying shifts of -2.89% and +6.99%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.65% higher. United Airlines is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, United Airlines is currently exchanging hands at a Forward P/E ratio of 4.45. This valuation marks a discount compared to its industry's average Forward P/E of 8.6.
Also, we should mention that UAL has a PEG ratio of 0.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.56.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.