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Is United Airlines (UAL) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is United Airlines (UAL - Free Report) . UAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that UAL holds a PEG ratio of 0.46. 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. UAL's industry currently sports an average PEG of 0.71. UAL's PEG has been as high as 0.68 and as low as 0.07, with a median of 0.46, all within the past year.
Investors should also recognize that UAL has a P/B ratio of 1.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. UAL's current P/B looks attractive when compared to its industry's average P/B of 3.33. Over the past 12 months, UAL's P/B has been as high as 2.77 and as low as 1.26, with a median of 1.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UAL has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that UAL has a P/CF ratio of 2.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.10. Within the past 12 months, UAL's P/CF has been as high as 4.07 and as low as 2.06, with a median of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that United Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, UAL sticks out at as one of the market's strongest value stocks.
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Is United Airlines (UAL) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is United Airlines (UAL - Free Report) . UAL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also note that UAL holds a PEG ratio of 0.46. 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. UAL's industry currently sports an average PEG of 0.71. UAL's PEG has been as high as 0.68 and as low as 0.07, with a median of 0.46, all within the past year.
Investors should also recognize that UAL has a P/B ratio of 1.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. UAL's current P/B looks attractive when compared to its industry's average P/B of 3.33. Over the past 12 months, UAL's P/B has been as high as 2.77 and as low as 1.26, with a median of 1.60.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. UAL has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.34.
Finally, we should also recognize that UAL has a P/CF ratio of 2.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.10. Within the past 12 months, UAL's P/CF has been as high as 4.07 and as low as 2.06, with a median of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that United Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, UAL sticks out at as one of the market's strongest value stocks.