United Airlines (UAL) Declines More Than Market: Some Information for Investors
The latest trading session saw United Airlines (UAL) ending at $42.89, denoting a -0.95% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.11%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.41%.
The the stock of airline has risen by 2.29% in the past month, leading the Transportation sector's gain of 1.84% and undershooting the S&P 500's gain of 2.7%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is expected to report EPS of -$0.49, up 22.22% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $12.42 billion, indicating an 8.66% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $9.72 per share and a revenue of $57.49 billion, demonstrating changes of -3.28% and +7.02%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.5% lower. As of now, United Airlines holds a Zacks Rank of #3 (Hold).
Digging into valuation, United Airlines currently has a Forward P/E ratio of 4.46. This expresses a discount compared to the average Forward P/E of 8.55 of its industry.
It's also important to note that UAL currently trades at a PEG ratio of 0.59. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry had an average PEG ratio of 0.59 as trading concluded yesterday.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
