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United Continental (UAL) Outpaces Stock Market Gains: What You Should Know

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United Continental (UAL - Free Report) closed the most recent trading day at $92.86, moving +1.19% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.

Prior to today's trading, shares of the airline had gained 12.98% over the past month. This has outpaced the Transportation sector's loss of 0.82% and the S&P 500's loss of 4.06% in that time.

UAL will be looking to display strength as it nears its next earnings release, which is expected to be January 22, 2019. The company is expected to report EPS of $1.79, up 27.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.36 billion, up 9.77% from the year-ago period.

UAL's full-year Zacks Consensus Estimates are calling for earnings of $8.54 per share and revenue of $41.17 billion. These results would represent year-over-year changes of +26.33% and +9.1%, respectively.

Investors might also notice recent changes to analyst estimates for UAL. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. UAL is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, UAL is holding a Forward P/E ratio of 10.88. This valuation marks a discount compared to its industry's average Forward P/E of 12.66.

We can also see that UAL currently has a PEG ratio of 0.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UAL's industry had an average PEG ratio of 0.69 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% 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.

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