United Airlines (UAL – Free Report) closed the latest trading day at $98.21, indicating a -1.45% change from the previous session’s end. This change lagged the S&P 500’s daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 1.19%.
The the stock of airline has risen by 2.91% in the past month, leading the Transportation sector’s loss of 6.6% and the S&P 500’s loss of 0.36%.
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 $2.97, marking a 48.5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.4 billion, up 5.68% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.27 per share and revenue of $56.77 billion, which would represent changes of +2.19% and +5.68%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 0.45% rise in the Zacks Consensus EPS estimate. United Airlines is currently a Zacks Rank #2 (Buy).
Looking at valuation, United Airlines is presently trading at a Forward P/E ratio of 9.7. This indicates a discount in contrast to its industry’s Forward P/E of 10.29.
We can also see that UAL currently has a PEG ratio of 1.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Transportation – Airline industry held an average PEG ratio of 0.99.
The Transportation – Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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