In the latest trading session, United Airlines (UAL) closed at $113.53, marking a -2.15% move from the previous day. This change lagged the S&P 500's daily gain of 0.46%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.57%.
The stock of airline has risen by 21.33% in the past month, leading the Transportation sector's gain of 9.63% and the S&P 500's gain of 4.22%.
Market participants will be closely following the financial results of United Airlines in its upcoming release. The company is expected to report EPS of $2.93, down 10.12% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $15.44 billion, indicating a 5.04% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.46 per share and revenue of $59.11 billion, indicating changes of -1.41% and +3.59%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 3.41% lower. United Airlines presently features a Zacks Rank of #3 (Hold).
In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 11.09. This signifies a discount in comparison to the average Forward P/E of 12.37 for its industry.
Also, we should mention that UAL has a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.87.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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