United Airlines (UAL) closed at $105.14 in the latest trading session, marking a -3.38% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.89%.
The airline's stock has climbed by 16.17% in the past month, exceeding the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.39%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. It is anticipated that the company will report an EPS of $1.9, marking a 50.9% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.58 billion, indicating a 15.41% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.63 per share and a revenue of $66.59 billion, signifying shifts of -9.32% and +12.72%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for United Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 2.79% higher. United Airlines presently features a Zacks Rank of #4 (Sell).
In the context of valuation, United Airlines is at present trading with a Forward P/E ratio of 11.3. Its industry sports an average Forward P/E of 11.25, so one might conclude that United Airlines is trading at a premium comparatively.
Investors should also note that UAL has a PEG ratio of 0.9 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. The average PEG ratio for the Transportation - Airline industry stood at 0.98 at the close of the market yesterday.
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 224, finds itself in the bottom 9% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UAL in the coming trading sessions, be sure to utilize 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).