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Here's Why United Airlines (UAL) Fell More Than Broader Market
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In the latest market close, United Airlines (UAL - Free Report) reached $56.13, with a -1.63% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.93%. Meanwhile, the Dow experienced a drop of 0.41%, and the technology-dominated Nasdaq saw a decrease of 1.53%.
Coming into today, shares of the airline had gained 29.56% in the past month. In that same time, the Transportation sector gained 1.75%, while the S&P 500 gained 2.17%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is forecasted to report an EPS of $3.06, showcasing a 16.16% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.93 billion, up 3.11% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.78 per share and a revenue of $56.71 billion, indicating changes of -2.69% and +5.57%, respectively, from the former year.
Any recent changes to analyst estimates for United Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.56% higher. United Airlines currently has a Zacks Rank of #3 (Hold).
Investors should also note United Airlines's current valuation metrics, including its Forward P/E ratio of 5.83. This indicates a discount in contrast to its industry's Forward P/E of 10.46.
Also, we should mention that UAL has a PEG ratio of 1.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. UAL's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why United Airlines (UAL) Fell More Than Broader Market
In the latest market close, United Airlines (UAL - Free Report) reached $56.13, with a -1.63% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.93%. Meanwhile, the Dow experienced a drop of 0.41%, and the technology-dominated Nasdaq saw a decrease of 1.53%.
Coming into today, shares of the airline had gained 29.56% in the past month. In that same time, the Transportation sector gained 1.75%, while the S&P 500 gained 2.17%.
The investment community will be closely monitoring the performance of United Airlines in its forthcoming earnings report. The company is forecasted to report an EPS of $3.06, showcasing a 16.16% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.93 billion, up 3.11% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.78 per share and a revenue of $56.71 billion, indicating changes of -2.69% and +5.57%, respectively, from the former year.
Any recent changes to analyst estimates for United Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.56% higher. United Airlines currently has a Zacks Rank of #3 (Hold).
Investors should also note United Airlines's current valuation metrics, including its Forward P/E ratio of 5.83. This indicates a discount in contrast to its industry's Forward P/E of 10.46.
Also, we should mention that UAL has a PEG ratio of 1.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. UAL's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.