United Airlines (UAL) ended the recent trading session at $110.27, demonstrating a -1.96% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.16%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.81%.
The airline's shares have seen an increase of 22.37% over the last month, surpassing the Transportation sector's gain of 7.7% and the S&P 500's gain of 1.03%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company's upcoming EPS is projected at $2.97, signifying a 8.90% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.51 billion, up 5.57% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.5 per share and a revenue of $59.13 billion, demonstrating changes of -1.04% and +3.63%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for United Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.07% lower. Right now, United Airlines possesses a Zacks Rank of #3 (Hold).
In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 10.71. This expresses a discount compared to the average Forward P/E of 12.15 of its industry.
Meanwhile, UAL's PEG ratio is currently 1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Airline industry stood at 0.85 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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