Why Earnings Season Could Be Great for United Continental (UAL)
Investors are always looking for stocks that are poised to beat at earnings season and United Continental Holdings, Inc. UAL may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because United Continental is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for UAL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 97 cents per share for UAL, compared to a broader Zacks Consensus Estimate of 94 cents per share. This suggests that analysts have very recently bumped up their estimates for UAL, giving the stock a Zacks Earnings ESP of +2.97% heading into earnings season.
United Continental Holdings, Inc. Price and EPS Surprise
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that UAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for United Continental, and that a beat might be in the cards for the upcoming report.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.