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United (UAL) Soars 8.8%: Is Further Upside Left in the Stock?

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United Airlines (UAL - Free Report) shares soared 8.8% in the last trading session to close at $58.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.9% gain over the past four weeks.

United Airlines, like other major airline stocks, was buoyed by Southwest Airlines' (LUV - Free Report) upbeat views, announced on Sep. 26, 2024, on third-quarter 2024 unit revenues and fuel costs. LUV also laid out an impressive roadmap for its growth and announced a new share buyback. plan. In fact, airlines like Alaska Air (ALK - Free Report) and Allegiant Travel (ALGT - Free Report) have also announced bullish third-quarter 2024 views reflecting upbeat air-travel demand and low fuel costs. Due to the buoyancy surrounding the airline industry, UAL shares have gained 11.9% over the past five trading days.

This airline is expected to post quarterly earnings of $3.06 per share in its upcoming report, which represents a year-over-year change of -16.2%. Revenues are expected to be $14.93 billion, up 3.1% 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 1.4% 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 part of the Zacks Transportation - Airline industry. Spirit (SAVE - Free Report) , another stock in the same industry, closed the last trading session 6.5% higher at $2.46. SAVE has returned -8.7% in the past month.

For Spirit, the consensus EPS estimate for the upcoming report has changed +1.1% over the past month to -$2.35. This represents a change of -71.5% from what the company reported a year ago. Spirit currently has a Zacks Rank of #3 (Hold).

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