Yahoo Finance United Airlines (UAL) Up 16.8% Year to Date: More Upside Ahead?
United Airlines UAL shares have gained 16.8% on a year-to-date basis compared with the industry’s 11.5% growth. The S&P 500 composite index rose 15.5% in the same time frame, while the Zacks Transportation sector declined 4.7%. The Chicago-based company currently has a market capitalization of $15.85 billion.
Upbeat passenger volumes, owing to the buoyant air-travel demand scenario, is the primary growth driver for UAL. The airline operator, presently carrying a Zacks Rank #2 (Buy), boasts an impressive track record of beating estimates in each of the trailing four quarters, the average surprise being 32.34%.
Can UAL Retain the Momentum?
The Zacks Consensus Estimate for UAL’s 2024 earnings is pegged at $9.93 per share, which indicates an improvement of 0.2% over the past 60 days. The same for revenues stands at $57.75 billion, which implies a 7.51% increase from the prior year's actual.
The consensus mark for 2025 earnings is pegged at $11.42 per share, indicating 15% growth from the 2024 estimate. The same for revenues is $61.34 billion, which indicates a rise of 6.2% from the 2024 estimate.
With people taking to the skies in large numbers, passenger revenues are high. As evidenced, United Airlines posted a significant year-over-year increase (19.5%) in revenues for 2023. The increase in the top line was driven by a 22.5% rise in passenger revenues (accounting for 92% of the top line). The ongoing summer season is likely to provide a further boost to passenger revenues.
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UAL’s environment-friendly approach also bodes well. The company intends to reach 100% green net-zero emission by 2050 without using any carbon offset mechanism. To achieve this objective, UAL operated the first-ever commercial flight using 100% sustainable aviation fuel in one of its two engines.
United Airlines boasts an impressive VGM Score of A. VGM Score helps to identify stocks with the most attractive value, the best growth and the most promising momentum.
Other Stocks to Consider
Investors interested in the transportation sector may also consider SkyWest SKYW and Kirby Corporation KEX.
SkyWest currently carries a Zacks Rank #2 and has an expected earnings growth rate of 787% for the current year.
SKYW has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 128%. Shares of SkyWest have jumped 102.7% in the past year.
KEX sports a Zacks Rank #1 (Strong Buy) at present. Kirby has an expected earnings growth rate of 42.5% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 10.3%. Shares of Kirby have climbed 59% in the past year.
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United Airlines Holdings Inc (UAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Kirby Corporation (KEX): Free Stock Analysis Report
