In the latest trading session, United Airlines (UAL) closed at $43.71, marking a +0.55% move from the previous day. The stock lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Heading into today, shares of the airline had lost 17.03% over the past month, lagging the Transportation sector's loss of 1.63% and the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from United Airlines as it approaches its next earnings release. On that day, United Airlines is projected to report earnings of -$0.07 per share, which would represent year-over-year growth of 98.35%. Our most recent consensus estimate is calling for quarterly revenue of $11.4 billion, up 50.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.23 per share and revenue of $53.06 billion, which would represent changes of +226.59% and +18.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 10.03% higher. United Airlines is currently a Zacks Rank #3 (Hold).
Looking at its valuation, United Airlines is holding a Forward P/E ratio of 5.28. This represents a discount compared to its industry's average Forward P/E of 11.75.
Meanwhile, UAL's PEG ratio is currently 0.11. 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. Transportation - Airline stocks are, on average, holding a PEG ratio of 0.36 based on yesterday's closing prices.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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