Here's Why Investors Should Give United Airlines Stock a Miss Now

United Airlines UAL is grappling with elevated operating expenses and weak liquidity, hampering the company’s financial prospects and making it an unattractive choice for investors’ portfolios.Let’s delve deeper.UAL: Key Risks to WatchSouthward Earnings Estimate Revision: The Zacks Consensus Estimate for current-year earnings has moved 8.97% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 5.03% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.Image Source: Zacks Investment ResearchDim Price Performance:  The company’s price trend reveals that its shares have dropped 24.2% year to date compared with the Transportation - Airlineindustry’s 10.7% fall.Image Source: Zacks Investment ResearchWeak Zacks Rank: United Airlines currently carries a Zacks Rank #4 (Sell).Headwinds: The company’s financial stability is challenged by elevated expenses and weak liquidity. In the first quarter of 2025, total operating expenses rose 1.3% year over year to $12.6 billion. This surge in expenses was primarily due to escalated labor costs and landing fees.Labor costs, comprising salaries and related costs, accounting for 33% of the total operating expenses, increased 5.7% year over year. Landing fees and other rent rose 8.6% year over year.Moreover, UAL exited the quarter with a current ratio (a measure of liquidity) of 0.78. A current ratio of less than 1 is undesirable as it indicates that the company does not hold sufficient cash to meet its short-term obligations.Bottom of FormStocks to ConsiderInvestors interested in the Transportation sector may consider Copa Holdings CPA and Ryanair RYAAY.CPA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 17.9% year to date.RYAAY currently carries a Zacks Rank of #2.RYAAY has an expected earnings growth rate of 30.5% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 46.6%. Shares of RYAAY have rallied 26.2% year to date.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks