United Airlines shares fell more than 6% on Tuesday, sharply underperforming the broader market as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all declined. The airline is expected to report a sharp drop in quarterly earnings later this month.
United Airlines shares fell more than 6% on Tuesday, sharply underperforming the broader market as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all declined. The airline is expected to report a sharp drop in quarterly earnings later this month.
United Airlines fell 6.25% to $102.78, outpacing declines across the S&P 500, Dow and Nasdaq on Tuesday. The decline was more than triple the S&P 500's 1.62% loss and exceeded the Dow's 1.87% drop and the Nasdaq's 1.98% slide.
The stock carries a Zacks Rank of #3 (Hold), with consensus estimates for the current quarter rising 2.79% over the past 30 days, according to Zacks Investment Research. Despite the sharp single-day move, United Airlines has gained 14.39% over the past month, outperforming the broader market.
Analysts expect the carrier to report second-quarter earnings per share of $1.90, a 50.9% decline from a year earlier. Revenue is projected at $17.58 billion, up 15.41% year over year. For the full year, the consensus calls for earnings of $9.63 per share on revenue of $66.59 billion.
The Transportation-Airline industry ranks in the bottom 16% of more than 250 industries, reflecting the challenges carriers face from elevated fuel costs and capacity pressures. United Airlines trades at 11.38 times forward earnings, roughly in line with the industry average of 11.36. Its PEG ratio of 0.91 sits below the industry median of 1.0. United Airlines reports second-quarter results later this month, with investors focused on whether the company can deliver on earnings expectations as it navigates a challenging operating environment.
This article is for informational purposes only and does not constitute investment advice.
