This story originally appeared on Zacks
United Airlines (UAL) closed at $46.25 in the latest trading session, marking a +1.67% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.06%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Coming into today, shares of the airline had gained 3.41% in the past month. In that same time, the Transportation sector gained 4.02%, while the S&P 500 gained 5.76%.
Wall Street will be looking for positivity from United Airlines as it approaches its next earnings report date. The company is expected to report EPS of -$2.16, up 69.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.94 billion, up 132.85% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for United Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.97% lower within the past month. United Airlines is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Airlines is holding a Forward P/E ratio of 23.82. For comparison, its industry has an average Forward P/E of 18.06, which means United Airlines is trading at a premium to the group.
The Transportation – Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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