United Airlines (UAL) ended the last trading day at $42.14, down 1.5% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.16%. The Dow, on the other hand, added 0.02% and the tech-heavy Nasdaq gained 0.16%.

Prior to today’s trading, the airline’s shares had lost 8.51% over the past month, lagging the Transportation sector’s gain of 0.38% and the S&P 500’s gain of 2.97% in that time.

Investors will be eagerly awaiting United Airlines’ performance in its upcoming earnings release. In this report, analysts expect United Airlines to report earnings of $3.02 per share, which would represent a year-over-year decline of 17.26%. Meanwhile, our current consensus estimate is projecting revenue of $14.97 billion, representing growth of 3.39% from the corresponding quarter last year.

For the full year, analysts expect earnings of $9.63 per share and revenue of $56.82 billion, according to Zacks Consensus Estimates. These figures would represent a year-on-year change of -4.18% and +5.77%, respectively.

Investors should also pay attention to any recent revisions to analyst estimates for United Airlines. Recent revisions typically reflect the latest near-term business trends, so positive changes in estimates suggest that analysts are optimistic about the company’s business and profitability.

Based on our research, we believe these estimate changes are directly related to stock moves within the team. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and provides a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a proven, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus Estimate for earnings per share has moved 0.14% higher. Currently, United Airlines has a Zacks Rank of #3 (Hold).

In terms of valuation, United Airlines is currently trading at a P/E ratio of 4.44, which represents a discount to the industry’s average P/E ratio of 10.13.

We can also see that UAL currently has a PEG ratio of 0.69. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Transportation & Aviation industry had an average PEG ratio of 0.89 as of yesterday’s close.

The Transportation – Aviation industry is part of the Transportation sector. The current Zacks Industry Rank of 226 puts this industry in the bottom 11% of all industries which include 250+ industries.

The story continues

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within those groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all of these and other stock-influencing metrics during the upcoming trading sessions.

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United Airlines Holdings Inc (UAL): Free Stock Analysis Report

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