United Airlines (UAL – Free Report) closed the latest trading day at $74.87, indicating a +1.12% change from the previous session’s end. This move outpaced the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.
The airline’s stock has dropped by 27.76% in the past month, falling short of the Transportation sector’s loss of 5.71% and the S&P 500’s loss of 7.33%.
The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. In that report, analysts expect United Airlines to post earnings of $0.88 per share. This would mark year-over-year growth of 686.67%. Meanwhile, our latest consensus estimate is calling for revenue of $13.54 billion, up 7.96% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.65 per share and revenue of $61.05 billion, which would represent changes of +19.23% and +6.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 2.38% lower within the past month. United Airlines currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, United Airlines is currently exchanging hands at a Forward P/E ratio of 5.85. This signifies a discount in comparison to the average Forward P/E of 8.47 for its industry.
It is also worth noting that UAL currently has a PEG ratio of 0.47. 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. UAL’s industry had an average PEG ratio of 0.66 as of yesterday’s close.
The Transportation – Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% 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.
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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