United Airlines Hits 52-Week High, Will the Momentum Keep Going

Chicago: Have you noticed how United Airlines (UAL) has been on fire lately? The stock jumped 12.6% in just a month and hit a new 52-week high of $110.92. Since the start of the year, it’s up 10.3%, while the broader transportation sector has dipped by 3.7%. Pretty impressive, right?

So, what’s fueling this rise? United has been consistently beating earnings expectations. In its latest report on October 15, 2024, it posted earnings of $3.33 per share, surpassing the forecast of $3.1. For this fiscal year, analysts expect earnings of $12.41 per share on revenues of $56.77 billion, with a nice bump to $14.02 per share next year.

Even though the stock is at a high, it’s worth checking out its valuation metrics. United has a solid Value Score of A, with Growth and Momentum Scores of C and A, respectively. It trades at 8.6 times this year’s earnings, which is a bit below the industry average.

United’s Zacks Rank is #1, which is a strong buy signal. This means it’s a good pick for investors looking for solid stocks. With the airline industry performing well, United seems to have more room to grow.

Speaking of competition, American Airlines (AAL) is also doing well, with a Zacks Rank of #1 and strong earnings. They beat estimates by a whopping 130.77% last quarter. AAL shares have also gained 8.6% recently, making it a solid choice in the airline sector.

Overall, the airline industry is in a good spot, and both United and American Airlines are looking strong. If you’re thinking about investing, these stocks might be worth a closer look.