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United Airlines (UAL) Dips More Than Broader Markets: What You Should Know

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United Airlines (UAL) closed at $37.91 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the airline had gained 3.35% over the past month, outpacing the Transportation sector's loss of 2.87% and the S&P 500's loss of 1.89% in that time.

Wall Street will be looking for positivity from United Airlines as it approaches its next earnings report date. This is expected to be July 20, 2022. On that day, United Airlines is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 147.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.98 billion, up 118.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.41 per share and revenue of $43.83 billion, which would represent changes of +102.94% and +77.91%, respectively, from the prior year.

Any recent changes to analyst estimates for United Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 60% higher within the past month. United Airlines is currently a Zacks Rank #3 (Hold).

Digging into valuation, United Airlines currently has a Forward P/E ratio of 94.23. This represents a premium compared to its industry's average Forward P/E of 19.02.

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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