United Airlines (UAL) ended the recent trading session at $113.01, demonstrating a +1.06% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The airline's shares have seen an increase of 6.77% over the last month, surpassing the Transportation sector's gain of 3.99% and the S&P 500's gain of 0.54%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is expected to report EPS of $2.93, down 10.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.44 billion, up 5.04% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.46 per share and a revenue of $59.11 billion, demonstrating changes of -1.41% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for United Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.59% higher. United Airlines currently has a Zacks Rank of #3 (Hold).
With respect to valuation, United Airlines is currently being traded at a Forward P/E ratio of 8.51. This signifies a discount in comparison to the average Forward P/E of 9.3 for its industry.
It's also important to note that UAL currently trades at a PEG ratio of 0.8. 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. By the end of yesterday's trading, the Transportation - Airline industry had an average PEG ratio of 0.6.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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