We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add UAL Stock to Your Portfolio Now
Read MoreHide Full Article
United Airlines (UAL - Free Report) continues to benefit from robust air travel demand. The company’s efforts to expand its global reach are commendable. Due to these tailwinds, UAL shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring UAL Stock
Robust Price Performance: The company’s price trend reveals that its shares have surged 139% over the past year, surpassing the industry’s 44.6% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 9.6% over the past 60 days for the fourth quarter of 2024. For 2024 and 2025, the consensus mark for earnings per share has moved 5% and 5.9% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Zacks Rank: UAL currently carries a Zacks Rank #2 (Buy).
Bullish Industry Rank: The industry to which United Airlines belongs currently has a Zacks Industry Rank of 18 (out of 249). Such a favorable rank places it in the top 7% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Positive Earnings Surprise History: United Airlines has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 26.9%.
Growth Factors: United Airlines' top line is bolstered by strong demand across key revenue segments. In the third quarter of 2024, airlinetraffic (measured in revenue passenger miles) rose by 2.7% year over year. To meet this surge in demand, capacity (measured in available seat miles) grew by 4.1%. As traffic failed to outpace capacity expansion, the consolidated load factor (percentage of seat occupancy) fell 1.1 percentage points to 85.3%.
United Airlines is making significant moves to improve customer experience and expand its global presence. The agreement with SpaceX to offer free, fast Starlink Wi-Fi on more than 1,000 aircraft starting in late 2025 sets a new standard for in-flight connectivity. Moreover, United's largest international expansion, adding eight new destinations in 2025, strengthens its global network, including underserved locations like Ulaanbaatar and Kaohsiung.
The deal with SkyWest (SKYW - Free Report) in the third quarter of 2024 to introduce the CRJ550 aircraft to United Express also enhances regional service, starting with 11 planes in December. These efforts highlight UAL's focus on innovation, customer service and global growth.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Westinghouse Air Brake Technologies (WAB - Free Report) and SkyWest.
Westinghouse Air Brake Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. WAB has an expected earnings growth rate of 2.01% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 9.46%. Shares of WAB have risen 69% in the past year.
SkyWest currently sports a Zacks Rank #1 and has an expected earnings growth rate of 4.07% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 79.12%. Shares of SKYW have climbed 136.3% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add UAL Stock to Your Portfolio Now
United Airlines (UAL - Free Report) continues to benefit from robust air travel demand. The company’s efforts to expand its global reach are commendable. Due to these tailwinds, UAL shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s delve deeper.
Factors Favoring UAL Stock
Robust Price Performance: The company’s price trend reveals that its shares have surged 139% over the past year, surpassing the industry’s 44.6% decline.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 9.6% over the past 60 days for the fourth quarter of 2024. For 2024 and 2025, the consensus mark for earnings per share has moved 5% and 5.9% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Zacks Rank: UAL currently carries a Zacks Rank #2 (Buy).
Bullish Industry Rank: The industry to which United Airlines belongs currently has a Zacks Industry Rank of 18 (out of 249). Such a favorable rank places it in the top 7% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Positive Earnings Surprise History: United Airlines has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 26.9%.
Growth Factors: United Airlines' top line is bolstered by strong demand across key revenue segments. In the third quarter of 2024, airlinetraffic (measured in revenue passenger miles) rose by 2.7% year over year. To meet this surge in demand, capacity (measured in available seat miles) grew by 4.1%. As traffic failed to outpace capacity expansion, the consolidated load factor (percentage of seat occupancy) fell 1.1 percentage points to 85.3%.
United Airlines is making significant moves to improve customer experience and expand its global presence. The agreement with SpaceX to offer free, fast Starlink Wi-Fi on more than 1,000 aircraft starting in late 2025 sets a new standard for in-flight connectivity. Moreover, United's largest international expansion, adding eight new destinations in 2025, strengthens its global network, including underserved locations like Ulaanbaatar and Kaohsiung.
The deal with SkyWest (SKYW - Free Report) in the third quarter of 2024 to introduce the CRJ550 aircraft to United Express also enhances regional service, starting with 11 planes in December. These efforts highlight UAL's focus on innovation, customer service and global growth.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Westinghouse Air Brake Technologies (WAB - Free Report) and SkyWest.
Westinghouse Air Brake Technologies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. WAB has an expected earnings growth rate of 2.01% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 9.46%. Shares of WAB have risen 69% in the past year.
SkyWest currently sports a Zacks Rank #1 and has an expected earnings growth rate of 4.07% for the current year.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 79.12%. Shares of SKYW have climbed 136.3% in the past year.