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Is United Airlines (UAL) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is United Airlines (UAL - Free Report) . UAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.37. This compares to its industry's average Forward P/E of 17.64. Over the past year, UAL's Forward P/E has been as high as 8.40 and as low as 3.63, with a median of 4.52.
We also note that UAL holds a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UAL's PEG compares to its industry's average PEG of 1.13. Within the past year, UAL's PEG has been as high as 1.13 and as low as 0.08, with a median of 0.57.
Investors should also recognize that UAL has a P/B ratio of 2.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. UAL's current P/B looks attractive when compared to its industry's average P/B of 4.95. Over the past year, UAL's P/B has been as high as 2.78 and as low as 1.18, with a median of 1.57.
Value investors will likely look at more than just these metrics, but the above data helps show that United Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, UAL sticks out at as one of the market's strongest value stocks.
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Is United Airlines (UAL) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is United Airlines (UAL - Free Report) . UAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.37. This compares to its industry's average Forward P/E of 17.64. Over the past year, UAL's Forward P/E has been as high as 8.40 and as low as 3.63, with a median of 4.52.
We also note that UAL holds a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. UAL's PEG compares to its industry's average PEG of 1.13. Within the past year, UAL's PEG has been as high as 1.13 and as low as 0.08, with a median of 0.57.
Investors should also recognize that UAL has a P/B ratio of 2.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. UAL's current P/B looks attractive when compared to its industry's average P/B of 4.95. Over the past year, UAL's P/B has been as high as 2.78 and as low as 1.18, with a median of 1.57.
Value investors will likely look at more than just these metrics, but the above data helps show that United Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, UAL sticks out at as one of the market's strongest value stocks.