United Airlines (UAL) closed the most recent trading day at $77.55, moving +1.07% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Shares of the airline witnessed a loss of 0.99% over the previous month, trailing the performance of the Transportation sector with its gain of 1.77%, and the S&P 500's gain of 5.12%.
Investors will be eagerly watching for the performance of United Airlines in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.82, signifying a 7.73% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.31 billion, reflecting a 2.13% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.95 per share and revenue of $58.67 billion. These totals would mark changes of -6.22% and +2.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.15% lower. United Airlines is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 7.71. This expresses a discount compared to the average Forward P/E of 9.5 of its industry.
Meanwhile, UAL's PEG ratio is currently 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Airline industry was having an average PEG ratio of 0.89.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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