United Airlines (UAL) Stock Sinks As Market Gains: Here's Why

In the latest trading session, United Airlines (UAL) closed at $104.73, marking a -3.46% move from the previous day. This change lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.22%. Shares of the airline have appreciated by 12.24% over the course of the past month, outperforming the Transportation sector's gain of 5.88%, and the S&P 500's gain of 0.08%.Investors will be eagerly watching for the performance of United Airlines in its upcoming earnings disclosure. On that day, United Airlines is projected to report earnings of $3.15 per share, which would represent a year-over-year decline of 3.37%. Meanwhile, our latest consensus estimate is calling for revenue of $15.55 billion, up 5.84% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $10.69 per share and a revenue of $59.23 billion, demonstrating changes of +0.75% and +3.79%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.34% fall in the Zacks Consensus EPS estimate. United Airlines is currently a Zacks Rank #3 (Hold). Valuation is also important, so investors should note that United Airlines has a Forward P/E ratio of 10.15 right now. This represents a discount compared to its industry average Forward P/E of 11.33. We can additionally observe that UAL currently boasts a PEG ratio of 1.01. 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. As of the close of trade yesterday, the Transportation - Airline industry held an average PEG ratio of 0.77. The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 42% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 United Airlines Holdings Inc (UAL): 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