In the latest close session, United Airlines (UAL) was down 2.1% at $112.42. This change lagged the S&P 500's 0.72% gain on the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 1.57%.
Shares of the airline witnessed a loss of 3.84% over the previous month, trailing the performance of the Transportation sector with its loss of 2.67%, and the S&P 500's gain of 3.68%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. In that report, analysts expect United Airlines to post earnings of $3.01 per share. This would mark year-over-year growth of 8.27%. At the same time, our most recent consensus estimate is projecting a revenue of $17.77 billion, reflecting a 16.68% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $9.91 per share and a revenue of $67.53 billion, demonstrating changes of -6.69% and +14.32%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 past month, there's been a 5.45% fall in the Zacks Consensus EPS estimate. United Airlines is currently a Zacks Rank #3 (Hold).
Digging into valuation, United Airlines currently has a Forward P/E ratio of 11.59. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 11.59.
We can also see that UAL currently has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.93 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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United Airlines Holdings Inc (UAL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).