Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Zacks Equity Research
3 min read
In This Article:
United Airlines (UAL) closed the latest trading day at $74.87, indicating a +1.12% change from the previous session’s end. This move outpaced the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.
The airline’s stock has dropped by 27.76% in the past month, falling short of the Transportation sector’s loss of 5.71% and the S&P 500’s loss of 7.33%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. In that report, analysts expect United Airlines to post earnings of $0.88 per share. This would mark year-over-year growth of 686.67%. Meanwhile, our latest consensus estimate is calling for revenue of $13.54 billion, up 7.96% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.65 per share and revenue of $61.05 billion, which would represent changes of +19.23% and +6.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 2.38% lower within the past month. United Airlines currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, United Airlines is currently exchanging hands at a Forward P/E ratio of 5.85. This signifies a discount in comparison to the average Forward P/E of 8.47 for its industry.
It is also worth noting that UAL currently has a PEG ratio of 0.47. 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. UAL’s industry had an average PEG ratio of 0.66 as of yesterday’s close.
The Transportation – Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% of all 250+ industries.
