United Airlines (UAL) Outperforms Broader Market: What You Need to Know
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United Airlines (UAL) ended the recent trading session at $81.62, demonstrating a +0.67% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%.
Coming into today, shares of the airline had gained 10.28% in the past month. In that same time, the Transportation sector gained 5.04%, while the S&P 500 gained 5.2%.
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The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is forecasted to report an EPS of $3.82, showcasing a 7.73% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $15.32 billion, reflecting a 2.21% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.17 per share and a revenue of $58.77 billion, signifying shifts of -4.15% and +2.99%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for United Airlines. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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 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 past month, the Zacks Consensus EPS estimate has shifted 4.6% downward. 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 7.98 right now. Its industry sports an average Forward P/E of 9.29, so one might conclude that United Airlines is trading at a discount comparatively.
One should further note that UAL currently holds a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UAL's industry had an average PEG ratio of 0.9 as of yesterday's close.