United Airlines (UAL) Gains As Market Dips: What You Should Know
United Airlines (UAL) closed at $24.48 in the latest trading session, marking a +1.92% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the airline had lost 48.65% over the past month, lagging the Transportation sector's loss of 13.64% and the S&P 500's loss of 10.5% in that time.
UAL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.61, down 153.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.62 billion, up 0.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $41.26 billion, which would represent changes of -71.54% and -4.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UAL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 72.06% lower within the past month. UAL currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that UAL has a Forward P/E ratio of 6.99 right now. Its industry sports an average Forward P/E of 12.45, so we one might conclude that UAL is trading at a discount comparatively.
It is also worth noting that UAL currently has a PEG ratio of 0.56. 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. The Transportation - Airline industry currently had an average PEG ratio of 1.53 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% 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.
To follow UAL in the coming trading sessions, be sure to utilize Zacks.com.
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