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United (UAL) Surges 8.3%: Is This an Indication of Further Gains?
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United Airlines (UAL - Free Report) shares rallied 8.3% in the last trading session to close at $34.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 31.2% loss over the past four weeks.
It is no secret that the upsurge in oil price, following the invasion of Ukraine by Russia, is hurting airline stocks with United Airlines being no exception. Evidently, shares of UAL declined 15% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008. However, UAL shares bounced back and increased in the next two days. The rebound was owing the fact that oil price declined from the highs of $119.40 on Mar 7.
This airline is expected to post quarterly loss of $3.77 per share in its upcoming report, which represents a year-over-year change of +49.7%. Revenues are expected to be $7.51 billion, up 133.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For United, the consensus EPS estimate for the quarter has been revised 4.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on UAL going forward to see if this recent jump can turn into more strength down the road.
United is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, JetBlue Airways (JBLU - Free Report) , finished the last trading session 6.4% higher at $12.72. JBLU has returned -23.6% over the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -12.4% over the past month to -$0.99. This represents a change of +33.1% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).
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United (UAL) Surges 8.3%: Is This an Indication of Further Gains?
United Airlines (UAL - Free Report) shares rallied 8.3% in the last trading session to close at $34.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 31.2% loss over the past four weeks.
It is no secret that the upsurge in oil price, following the invasion of Ukraine by Russia, is hurting airline stocks with United Airlines being no exception. Evidently, shares of UAL declined 15% on Mar 7 from the Mar 4 closing as price of oil touched the highest level since 2008. However, UAL shares bounced back and increased in the next two days. The rebound was owing the fact that oil price declined from the highs of $119.40 on Mar 7.
This airline is expected to post quarterly loss of $3.77 per share in its upcoming report, which represents a year-over-year change of +49.7%. Revenues are expected to be $7.51 billion, up 133.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For United, the consensus EPS estimate for the quarter has been revised 4.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on UAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
United is a member of the Zacks Transportation - Airline industry. One other stock in the same industry, JetBlue Airways (JBLU - Free Report) , finished the last trading session 6.4% higher at $12.72. JBLU has returned -23.6% over the past month.
For JetBlue, the consensus EPS estimate for the upcoming report has changed -12.4% over the past month to -$0.99. This represents a change of +33.1% from what the company reported a year ago. JetBlue currently has a Zacks Rank of #3 (Hold).