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United Airlines (UAL) Gains As Market Dips: What You Should Know

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The most recent trading session ended with United Airlines (UAL - Free Report) standing at $43.54, reflecting a +1.44% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.

Heading into today, shares of the airline had gained 5.82% over the past month, outpacing the Transportation sector's gain of 2.9% and the S&P 500's gain of 3.5% in that time.

The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is scheduled to release its earnings on January 22, 2024. In that report, analysts expect United Airlines to post earnings of $1.64 per share. This would mark a year-over-year decline of 33.33%. At the same time, our most recent consensus estimate is projecting a revenue of $13.53 billion, reflecting a 9.12% rise from the equivalent quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, the Zacks Consensus EPS estimate has shifted 1.24% downward. United Airlines is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, United Airlines is holding a Forward P/E ratio of 4.57. For comparison, its industry has an average Forward P/E of 8.34, which means United Airlines is trading at a discount to the group.

One should further note that UAL currently holds a PEG ratio of 0.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UAL's industry had an average PEG ratio of 0.38 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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