United Airlines (UAL) closed at $41.62 in the latest trading session, marking a -1.61% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the airline had lost 14.92% over the past month. This has lagged the Transportation sector's loss of 6.01% and the S&P 500's loss of 4.45% 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 October 17, 2023. The company is expected to report EPS of $3.68, up 30.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.44 billion, up 12.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.70 per share and revenue of $53.65 billion. These totals would mark changes of +324.6% and +19.35%, respectively, from last year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.58% lower within the past month. United Airlines is currently a Zacks Rank #3 (Hold).
Looking at its valuation, United Airlines is holding a Forward P/E ratio of 3.95. This represents a discount compared to its industry's average Forward P/E of 7.96.
Investors should also note that UAL has a PEG ratio of 0.08 right now. 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. UAL's industry had an average PEG ratio of 0.32 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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