United Airlines (UAL) Falls More Steeply Than Broader Market: What Investors Need to Know

United Airlines (UAL) closed at $106.34 in the latest trading session, marking a -8.67% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.43%. Elsewhere, the Dow saw a downswing of 1.05%, while the tech-heavy Nasdaq depreciated by 0.92%.

The airline's shares have seen an increase of 12.02% over the last month, surpassing the Transportation sector's gain of 11.09% and the S&P 500's loss of 0.5%.

The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is forecasted to report an EPS of $1.31, showcasing a 43.96% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.14 billion, up 7.04% from the prior-year quarter.

UAL's full-year Zacks Consensus Estimates are calling for earnings of $13.34 per share and revenue of $63.79 billion. These results would represent year-over-year changes of +25.61% and +7.99%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, United Airlines holds a Zacks Rank of #3 (Hold).

In terms of valuation, United Airlines is presently being traded at a Forward P/E ratio of 8.73. This represents a discount compared to its industry average Forward P/E of 9.92.

Investors should also note that UAL has a PEG ratio of 0.62 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. UAL's industry had an average PEG ratio of 0.58 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 250 industries.

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.

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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This article originally published on Zacks Investment Research (zacks.com).

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