Back to top

Image: Bigstock

United Airlines (UAL) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

United Airlines (UAL - Free Report) ended the recent trading session at $97.67, demonstrating a +1.42% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.

Prior to today's trading, shares of the airline had gained 6.2% outpaced the Transportation sector's gain of 0.41% and the S&P 500's gain of 0.8%.

Investors will be eagerly watching for the performance of United Airlines in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 21, 2026. The company's upcoming EPS is projected at $1.17, signifying a 28.57% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.32 billion, up 8.36% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.77 per share and a revenue of $65.12 billion, indicating changes of +1.41% and +10.24%, respectively, from the former year.

Any recent changes to analyst estimates for United Airlines should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 18.59% lower. Currently, United Airlines is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, United Airlines is currently being traded at a Forward P/E ratio of 8.94. Its industry sports an average Forward P/E of 10.61, so one might conclude that United Airlines is trading at a discount comparatively.

It's also important to note that UAL currently trades at 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.5 based on yesterday's closing prices.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 153, positioning it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in