United Airlines (UAL), Gains but Lags Market: What you Should Know
United Airlines (UAL), which closed at $37.92 in the last trading session, saw a +1.69% increase over the previous day. The stock lagged the S&P 500’s daily gain of 1.75%. The Dow gained 1.05% while the tech-oriented Nasdaq gained 7.84%.
Shares of the airline lost 15.58% during the month, as of today. In that same time, the Transportation sector lost 3.4%, while the S&P 500 lost 4.4%.
As it approaches its next earnings release, United Airlines will be trying to show strength. The company expects to report EPS at $2.13, an increase of 233.13% over the prior-year quarter. Our consensus estimate for revenue is $12.18 billion. This is 48.68% more than the prior-year quarter.
Our Zacks Consensus estimates for the entire year project earnings of $2.18 per sen and revenue of $44.83 trillion, which would be an increase of +115.64% & +81.97% respectively from the previous year.
Also, it is important to take note of recent changes in analyst estimates for United Airlines. These revisions usually reflect short-term business trends that can change often. Therefore, positive estimates reflect optimism by analysts about the company’s business and profitability.
Our research shows that these revisions to estimates are directly linked to stock moves by near-team stocks. To capitalize on this phenomenon, we created the Zacks Rank. This system considers these changes and provides a clear, practical rating model.
The Zacks Rank system can be categorized as #1 (Strong buy) or #5 (Strong sell). The Zacks Rank system has an impressive, independent-audited track record. Since 1988, #1 stocks have delivered an average annual return +25%. The Zacks Consensus EPS estimate for United Airlines has moved 0.09% higher over the past month. United Airlines currently has a Zacks Rank #1 (Strong Buy).
United Airlines currently trades at a Forward PE ratio of 17.13. The industry has an average Forward PE ratio of 14.12 so it is possible to conclude that United Airlines trades at a premium.
Transportation is part of this sector. This group has a Zacks Industry Rank number 37, placing it in the top 15 percent of all 250+ industries.
The Zacks Industry Rank lists the order in which the Zacks Rank of each sector’s individual companies ranks. Our research shows that the top 50 percent of industries are rated higher than the bottom half, by a factor of two to 1.
Zacks.com is a great way to follow UAL during the next trading session.
Get the most recent Zacks Investment Research recommendations. You can now download 7 Best Stocks to Watch in the Next 30 days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report