Why United Airlines (UAL) Outpaced the Stock Market Today

In the latest trading session, United Airlines (UAL) closed at $81.01, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.94%.

Coming into today, shares of the airline had lost 1.27% in the past month. In that same time, the Transportation sector gained 4.03%, while the S&P 500 gained 5.13%.

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Investors will be eagerly watching for the performance of United Airlines in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 16, 2025. In that report, analysts expect United Airlines to post earnings of $3.81 per share. This would mark a year-over-year decline of 7.97%. Our most recent consensus estimate is calling for quarterly revenue of $15.31 billion, up 2.13% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.88 per share and a revenue of $58.63 billion, representing changes of -6.88% and +2.74%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for United Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term 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, 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. The Zacks Consensus EPS estimate has moved 2.82% lower within the past month. United Airlines is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, United Airlines is holding a Forward P/E ratio of 8.1. For comparison, its industry has an average Forward P/E of 9.78, which means United Airlines is trading at a discount to the group.

Meanwhile, UAL's PEG ratio is currently 1.29. 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 0.84 as of yesterday's close.

The Transportation - Airline industry is part of the Transportation sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 40% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

To follow UAL in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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