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

Zacks Equity Research
·3-min read

In the latest trading session, United Airlines (UAL) closed at $36.97, marking a +1.45% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the airline had lost 18.59% over the past month. This has lagged the Transportation sector's loss of 8.1% and the S&P 500's loss of 6.79% in that time.

Wall Street will be looking for positivity from United Airlines as it approaches its next earnings report date. This is expected to be July 20, 2022. In that report, analysts expect United Airlines to post earnings of $1.77 per share. This would mark year-over-year growth of 145.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.64 billion, up 112.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.07 per share and revenue of $43.32 billion, which would represent changes of +100.5% and +75.84%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for United Airlines. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 64.34% lower. United Airlines currently has a Zacks Rank of #3 (Hold).

In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 544.51. Its industry sports an average Forward P/E of 17.36, so we one might conclude that United Airlines is trading at a premium comparatively.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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