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Why United Airlines (UAL) Outpaced the Stock Market Today

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United Airlines (UAL - Free Report) closed at $47.88 in the latest trading session, marking a +1.35% move from the prior day. This change outpaced the S&P 500's 0.11% gain on the day. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.12%.

The airline's stock has climbed by 5.54% in the past month, exceeding the Transportation sector's gain of 1.53% and the S&P 500's gain of 3.55%.

The upcoming earnings release of United Airlines will be of great interest to investors. The company's earnings report is expected on April 16, 2024. On that day, United Airlines is projected to report earnings of -$0.53 per share, which would represent year-over-year growth of 15.87%. At the same time, our most recent consensus estimate is projecting a revenue of $12.39 billion, reflecting an 8.37% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.72 per share and a revenue of $57.49 billion, indicating changes of -3.28% and +7.03%, respectively, from the former year.

Investors might also notice recent changes 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% lower. United Airlines is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, United Airlines is presently being traded at a Forward P/E ratio of 4.86. This valuation marks a discount compared to its industry's average Forward P/E of 8.86.

Also, we should mention that UAL has a PEG ratio of 0.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.79 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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