United Airlines (UAL) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, United Airlines (UAL) closed at $31.74, marking a -0.06% move from the previous day. This move lagged the S&P 500's daily gain of 1.34%. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 0.94%.

Prior to today's trading, shares of the airline had lost 18.56% over the past month. This has lagged the Transportation sector's gain of 1.01% and the S&P 500's gain of 3.92% in that time.

Investors will be hoping for strength from UAL as it approaches its next earnings release, which is expected to be July 21, 2020. On that day, UAL is projected to report earnings of -$9.41 per share, which would represent a year-over-year decline of 323.52%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, down 89.39% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$20.82 per share and revenue of $18.68 billion, which would represent changes of -272.78% and -56.82%, respectively, from the prior year.

Any recent changes to analyst estimates for UAL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 1.53% higher within the past month. UAL is currently sporting a Zacks Rank of #3 (Hold).

The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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