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Here's Why United Airlines (UAL) Fell More Than Broader Market

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In the latest trading session, United Airlines (UAL - Free Report) closed at $113.49, marking a -2.18% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.06%. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

Heading into today, shares of the airline had gained 2.81% over the past month, outpacing the Transportation sector's gain of 2.21% and the S&P 500's gain of 1.99%.

The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on January 20, 2026. It is anticipated that the company will report an EPS of $2.98, marking a 8.59% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.38 billion, indicating a 4.67% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $10.52 per share and a revenue of $59.05 billion, demonstrating changes of -0.85% and 0%, respectively, from the preceding year.

Any recent changes to analyst estimates for United Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.62% higher. United Airlines is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, United Airlines is at present trading with a Forward P/E ratio of 8.78. This valuation marks a discount compared to its industry average Forward P/E of 10.02.

We can additionally observe that UAL currently boasts a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.59.

The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 41% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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