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Here's Why United Airlines (UAL) is a Strong Value Stock

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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United Airlines (UAL)

United Airlines Holdings is based in Chicago. The carrier changed its name from United Continental Holdings to United Airlines Holdings in June 2019. It is the holding company for both United Airlines and Continental Airlines.

UAL is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 5.1X for the current fiscal year compared to the Transportation - Airline industry's P/E of 11.1X. Additionally, UAL has a PEG Ratio of 0.1 and a Price/Cash Flow ratio of 4X. Value investors should also note UAL's Price/Sales ratio of 0.3X.

Many value investors pay close attention to a company's earnings as well. For UAL, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.47 to $8.23 per share for 2023. Per share UAL boasts an average earnings surprise of 5.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding UAL to their portfolios.

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research