United Airlines (UAL) ended the recent trading session at $101.59, demonstrating a +2.71% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.69%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 0.82%.
Prior to today's trading, shares of the airline had gained 4.18% outpaced the Transportation sector's gain of 3.51% and the S&P 500's loss of 0.31%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is forecasted to report an EPS of $3.3, showcasing a 1.23% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $15.55 billion, up 5.84% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.83 per share and revenue of $59.23 billion. These totals would mark changes of +2.07% and +3.79%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 moved 1.03% higher. 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 9.13. This expresses a discount compared to the average Forward P/E of 10.32 of its industry.
Meanwhile, UAL's PEG ratio is currently 0.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.73 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons 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.
To follow UAL in the coming trading sessions, be sure to utilize 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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