United Airlines Holdings Inc (NASDAQ:UAL) and American Airlines Group Inc (NASDAQ:AAL) shares are climbing higher Thursday morning, drafting on the tailwinds of a strong second-quarter earnings report and optimistic forecast from industry leader Delta Air Lines Inc (NYSE:DAL).
What To Know: Delta’s stock surged early Thursday after the carrier announced stronger-than-expected second-quarter results, with adjusted earnings of $2.10 per share on operating revenue of $16.65 billion. The positive performance was fueled by a 26% jump in passenger revenue and continued strength in its premium and loyalty segments.
This strong showing from a major carrier like Delta often signals positive underlying trends for the entire airline industry. Investors anticipate that factors boosting Delta’s performance, such as resilient travel demand and stabilizing fuel costs, will likely benefit its competitors as well. Consequently, positive investor sentiment surrounding Delta has translated into sympathy gains for United and American.
Adding to the optimism, Delta reinstated its full-year 2025 guidance, projecting earnings per share between $5.25 and $6.25 and free cash flow of $3 billion to $4 billion.
This confident outlook suggests a sustained period of profitability and stability for the sector, causing investors on Thursday to buy into other major airlines ahead of their own upcoming earnings announcements.
Benzinga Edge Rankings: Based on Benzinga Edge rankings, UAL shows an exceptional score for Growth at 99.38, placing it among the top-rated stocks for this metric. The airline also boasts a strong Momentum score of 81.42, suggesting a powerful and sustained upward trend in its stock price.
Complementing this, UAL holds a solid Value score of 76.02, indicating that it is considered reasonably priced based on its financial fundamentals.
AAL presents a mixed financial profile. The airline’s most favorable metric is its respectable Growth score of 69.72. In contrast, its Value score is more moderate at 45.51, suggesting it is not considered a strong bargain.
The stock’s key weakness appears to be its Momentum, which is rated low at 20.61, indicating a lack of positive recent price movement.
Price Action: According to data from Benzinga Pro, UAL shares are trading higher by 11.7% to $89.55 Thursday morning. AAL shares are meanwhile higher by 6.05% to $12.18.
Read Also: Airline Stocks Face Flat Q2—But 1 Thing Could Lift Them
How To Buy UAL Stock
By now you're likely curious about how to participate in the market for United Airlines Holdings – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of United Airlines Holdings, which is trading at $80.18 as of publishing time, $100 would buy you 1.25 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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