United Airlines (UAL) ended the recent trading session at $93.15, demonstrating a -3.47% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
The airline's shares have seen a decrease of 7.81% over the last month, not keeping up with the Transportation sector's loss of 0.18% and the S&P 500's gain of 3.54%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is slated to reveal its earnings on October 15, 2025. It is anticipated that the company will report an EPS of $2.64, marking a 20.72% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.27 billion, up 2.88% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.25 per share and revenue of $58.84 billion, indicating changes of -3.39% and +3.12%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% decrease. At present, United Airlines boasts a Zacks Rank of #3 (Hold).
In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 9.41. Its industry sports an average Forward P/E of 10.11, so one might conclude that United Airlines is trading at a discount comparatively.
Meanwhile, UAL's PEG ratio is currently 1.25. 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. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.81.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Airlines Holdings Inc (UAL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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