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

·3-min read

United Airlines (UAL) closed the most recent trading day at $41.36, moving -0.72% from the previous trading session. This change lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 1.35%.

Coming into today, shares of the airline had lost 17.64% in the past month. In that same time, the Transportation sector lost 4.21%, while the S&P 500 lost 1.48%.

Investors will be hoping for strength from United Airlines as it approaches its next earnings release. The company is expected to report EPS of $0.08, up 101.89% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.4 billion, up 50.67% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.23 per share and revenue of $52.98 billion, which would represent changes of +226.59% and +17.85%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 10.11% higher. United Airlines is currently a Zacks Rank #3 (Hold).

Looking at its valuation, United Airlines is holding a Forward P/E ratio of 5.06. This valuation marks a discount compared to its industry's average Forward P/E of 11.07.

It is also worth noting that UAL currently has a PEG ratio of 0.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UAL's industry had an average PEG ratio of 0.34 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 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.

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

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