In the latest trading session, United Airlines (UAL) closed at $82.36, marking a +1.67% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
The stock of airline has fallen by 0.75% in the past month, lagging the Transportation sector's gain of 5.56% and the S&P 500's gain of 4.99%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on July 16, 2025. The company's upcoming EPS is projected at $3.81, signifying a 7.97% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $15.29 billion, up 2.04% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.88 per share and a revenue of $58.63 billion, signifying shifts of -6.88% and +2.74%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-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 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 2.82% fall in the Zacks Consensus EPS estimate. United Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 8.2 right now. This valuation marks a discount compared to its industry average Forward P/E of 10.02.
It's also important to note that UAL currently trades at a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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