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United Airlines (UAL) Stock Slides as Market Rises: Facts to Know Before You Trade

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United Airlines (UAL - Free Report) closed the latest trading day at $38.96, indicating a -0.64% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.1%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.29%.

The airline's shares have seen an increase of 12.67% over the last month, surpassing the Transportation sector's gain of 10.08% and the S&P 500's gain of 10.68%.

The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is predicted to post an EPS of $1.73, indicating a 29.67% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.58 billion, up 9.49% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.75 per share and a revenue of $53.67 billion, signifying shifts of +286.9% and +19.38%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for United Airlines. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. United Airlines currently has a Zacks Rank of #3 (Hold).

In terms of valuation, United Airlines is currently trading at a Forward P/E ratio of 4.02. This indicates a discount in contrast to its industry's Forward P/E of 7.67.

Also, we should mention that UAL has a PEG ratio of 0.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Airline was holding an average PEG ratio of 0.34 at yesterday's closing price.

The Transportation - Airline industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 216, positioning it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow UAL in the coming trading sessions, be sure to utilize Zacks.com.


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