United Airlines (UAL) closed the most recent trading day at $115.06, moving +2.17% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 0.91%.
The airline's shares have seen an increase of 27.08% over the last month, surpassing the Transportation sector's gain of 3.65% and the S&P 500's gain of 4.96%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company's earnings per share (EPS) are projected to be $1.9, reflecting a 50.9% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $17.58 billion, reflecting a 15.41% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.43 per share and revenue of $66.59 billion. These totals would mark changes of -11.21% and +12.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% higher. United Airlines is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 11.94 right now. Its industry sports an average Forward P/E of 11.42, so one might conclude that United Airlines is trading at a premium comparatively.
Meanwhile, UAL's PEG ratio is currently 0.95. 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 currently had an average PEG ratio of 1.03 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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United Airlines Holdings Inc (UAL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).