United Airlines (UAL) Increases Yet Falls Behind Market: What Investors Need to Know

The most recent trading session ended with United Airlines (UAL) standing at $73.92, reflecting a +0.34% shift from the previouse trading day’s closing. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.85%, while the tech-heavy Nasdaq appreciated by 0.31%.Shares of the airline witnessed a loss of 29.34% over the previous month, trailing the performance of the Transportation sector with its loss of 8.84% and the S&P 500’s loss of 7.69%.

The investment community will be paying close attention to the earnings performance of United Airlines in its upcoming release. The company is expected to report EPS of $0.90, up 700% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.61 billion, up 8.54% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.69 per share and revenue of $61.23 billion. These totals would mark changes of +19.6% and +7.31%, respectively, from last year.

Investors should also note any 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. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been a 2.1% fall in the Zacks Consensus EPS estimate. United Airlines presently features a Zacks Rank of #3 (Hold).Looking at its valuation, United Airlines is holding a Forward P/E ratio of 5.81. This valuation marks a discount compared to its industry’s average Forward P/E of 8.36.

We can additionally observe that UAL currently boasts a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. UAL’s industry had an average PEG ratio of 0.65 as of yesterday’s close.

The Transportation – Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportIn the latest market close, Twilio (TWLO) reached $100.41, with a +1.45% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.85%, while the tech-heavy Nasdaq appreciated by 0.31%.

Heading into today, shares of the company had lost 20.93% over the past month, lagging the Computer and Technology sector’s loss of 11.22% and the S&P 500’s loss of 7.69% in that time.

The investment community will be closely monitoring the performance of Twilio in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.92, marking a 15% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 8.54% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $4.8 billion, indicating changes of +16.62% and +7.67%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Twilio. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.85% higher. Right now, Twilio possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Twilio is currently trading at a Forward P/E ratio of 23.14. This denotes a discount relative to the industry’s average Forward P/E of 27.15.

We can also see that TWLO currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Internet – Software industry currently had an average PEG ratio of 2.04 as of yesterday’s close.

The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 120, placing it within the top 48% of over 250 industries.