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

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United Airlines (UAL - Free Report) closed at $104.44 in the latest trading session, marking a -2.81% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.44%.

The airline's shares have seen a decrease of 2.15% over the last month, surpassing the Transportation sector's loss of 2.31% and falling behind the S&P 500's gain of 2.36%.

Analysts and investors alike will be keeping a close eye on the performance of United Airlines in its upcoming earnings disclosure. The company's earnings report is set to go public on October 20, 2026. The company is predicted to post an EPS of $2.68, indicating a 3.6% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $17.85 billion, showing a 17.25% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.94 per share and a revenue of $67.88 billion, indicating changes of -25.24% and +14.91%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. The Zacks Consensus EPS estimate has moved 19.9% lower within the past month. United Airlines is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, United Airlines is presently being traded at a Forward P/E ratio of 13.54. This signifies a premium in comparison to the average Forward P/E of 12.29 for its industry.

It's also important to note that UAL currently trades at a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.95.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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