United Airlines (UAL) closed at $102.78 in the latest trading session, marking a -6.25% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. Elsewhere, the Dow saw a downswing of 1.87%, while the tech-heavy Nasdaq depreciated by 1.98%.
The stock of airline has risen by 14.39% in the past month, leading the Transportation sector's gain of 3.78% and the S&P 500's loss of 0.03%.
The upcoming earnings release of United Airlines will be of great interest to investors. The company is predicted to post an EPS of $1.9, indicating a 50.9% decline compared to the equivalent quarter last 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 full year, the Zacks Consensus Estimates project earnings of $9.63 per share and a revenue of $66.59 billion, demonstrating changes of -9.32% and +12.72%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.79% higher. United Airlines currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 11.38 right now. This expresses a premium compared to the average Forward P/E of 11.36 of its industry.
It is also worth noting that UAL currently has a PEG ratio of 0.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Airline industry currently had an average PEG ratio of 1 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 205, placing it within the bottom 16% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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).