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Chicago, Illinois-based United Airlines Holdings, Inc. (UAL) owns and manages airlines that transports people and cargos serving customers worldwide. With a market cap of $24.3 billion, the company also offers catering, ground handling, flight academy, and maintenance services for third parties.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and UAL perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the airlines industry. UAL's extensive route network, strategic hubs, and loyalty program drive its competitive edge in global aviation, facilitating high-volume international and long-haul flights. The hub-and-spoke system boosts efficiency, while its MileagePlus program and partner agreements generate significant ancillary revenue.
Despite its notable strength, UAL slipped 35.9% from its 52-week high of $116, achieved on Jan. 22. Over the past three months, UAL stock has gained 4.2%, outperforming the U.S. Global Jets ETF’s (JETS) marginal loss during the same time frame.
In the longer term, shares of UAL dipped 23.5% on a YTD basis, underperforming JETS’ YTD losses of 14.7%. However, UAL climbed 49.9% over the past 52 weeks, outperforming JETS’ 9.7% returns during the same time frame.
To confirm the bullish trend, UAL has been trading above its 50-day moving average since early May. However, the stock is trading below its 200-day moving average since late March, with slight fluctuations.
UAL has outperformed due to the U.S. government's plans for air traffic control upgrades and its partnership with Archer Aviation Inc. (ACHR). Additionally, UAL is partnering with JetBlue Airways Corporation (JBLU) for increased service at New York's JFK airport, offering benefits such as reciprocal loyalty perks for travelers.
On Apr. 15, UAL shares closed up by 2% after reporting its Q1 results. Its adjusted EPS of $0.91 exceeded Wall Street expectations of $0.75. The company’s revenue was $13.21 billion, missing Wall Street forecasts of $13.22 billion.
In the competitive arena of airlines, Delta Air Lines, Inc. (DAL) has taken the lead over UAL, showing resilience with 21.4% loss on a YTD basis. However, DAL shares lagged behind the stock with a 4.1% downtick over the past 52 weeks.
Wall Street analysts are bullish on UAL’s prospects. The stock has a consensus “Strong Buy” rating from the 22 analysts covering it, and the mean price target of $101.41 suggests a potential upside of 36.5% from current price levels.
