Trading at a low P/E multiple with potential upside for investors, United Airlines Holdings, Inc. (NASDAQ:UAL) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.
Pixabay/Public Domain
On July 17, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) disclosed its Form 10-Q for Q2 2025 ended June 30, 2025. The company’s operating revenue increased by 1.7% on a YoY basis, reaching $15.2 billion. Higher passenger volumes and expanded capacity led to this revenue surge. However, operating income and net income fell by 31.3% and 26.4%, respectively, due to rising operational expenses. The company reported a decline in its earnings per share (EPS), which reached $3 per share.
Meanwhile, passenger revenue experienced a modest gain of 1.1%, while cargo and other segments experienced stronger gains. International markets outperformed the domestic passenger segment. Furthermore, a drop in load factors and an increase in service-related costs hampered efficiency, despite a 15.2% drop in fuel prices.
Following this announcement, there was a boost in investor and analyst sentiment. As such, UBS posted an update on the same day, reiterating its ‘Buy’ rating and $103 price target on United Airlines Holdings, Inc. (NASDAQ:UAL). The analyst also revised its EPS guidance to a range of $9 to $11, meeting buy-side expectations.
United Airlines Holdings, Inc. (NASDAQ:UAL) is an air carrier, offering transportation services for people and cargo globally. It is on the list of cheap transportation stocks.
While we acknowledge the potential of UAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Billionaire Kerr Neilson’s 10 Stock Picks with Huge Upside Potential and Top 10 AI Infrastructure Stocks to Buy Now.
Disclosure: None.