In the latest trading session, United Airlines (UAL) closed at $80.18, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.
The airline's shares have seen a decrease of 2.39% over the last month, not keeping up with the Transportation sector's gain of 2.95% and the S&P 500's gain of 3.85%.
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. It is anticipated that the company will report an EPS of $3.88, marking a 6.28% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 2.17% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.15 per share and revenue of $58.71 billion, indicating changes of -4.34% and +2.89%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.62% lower. United Airlines is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, United Airlines is currently exchanging hands at a Forward P/E ratio of 8. This signifies a discount in comparison to the average Forward P/E of 10.02 for its industry.
It's also important to note that UAL currently trades at a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Airline was holding an average PEG ratio of 0.88 at yesterday's closing price.
The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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