United Airlines (UAL) shares rallied 14.3% in the last trading session to close at $91.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2% gain over the past four weeks.
The upside was driven by optimism in the airline industry, which followed the better-than-expected second-quarter 2025 earnings results reported by Delta Air Lines (DAL). Notably, DAL's earnings and revenue beat, apart from the restoration of the full-year guidance, pleased investors.
This airline is expected to post quarterly earnings of $3.75 per share in its upcoming report, which represents a year-over-year change of -9.4%. Revenues are expected to be $15.31 billion, up 2.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For United, the consensus EPS estimate for the quarter has been revised 5.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
United belongs to the Zacks Transportation - Airline industry. Another stock from the same industry, Corporacion America Airports S.A. (CAAP), closed the last trading session 0.6% higher at $19.91. Over the past month, CAAP has returned -1.1%.
For Corporacion America Airports, the consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $0.47. This represents a change of +51.6% from what the company reported a year ago. Corporacion America Airports currently has a Zacks Rank of #4 (Sell).
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Corporacion America Airports S.A. (CAAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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