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United Airlines Holdings, Inc. (UAL), with a market cap of $26.3 billion, provides air transportation services in North America and globally. Founded in 1968, the Chicago, Illinois-based company transports people and cargo through its mainline and regional fleets.
Companies worth $10 billion or more are generally described as "large-cap stocks," and UAL, being one of the largest airline companies in the United States, fits this bill perfectly.
However, the company has fallen 32% from its 52-week high of $116, recorded on Jan. 22. UAL stock has fallen 22% over the past three months, underperforming the Industrial Select Sector SPDR Fund’s (XLI) marginal rise during the same time frame.
UAL has surged 45.8% over the past six months and 75.8% over the past 52 weeks. In contrast, XLI has surged marginally over the past six months and 8.1% over the past 52 weeks, underperforming the stock.
UAL has been trading above its 200-day moving average since mid-March but under its 50-day moving average since late-February.
UAL stock surged 2.9% following its Q4 earnings released on Jan. 21. The company reported a 7.8% increase in its operating revenue, which amounted to $14.7 billion. This growth was primarily driven by a record number of customers carried in a year at nearly 174 million system-wide and an average of 4,340 daily flights. Moreover, its EPS amounted to $3.26, surpassing the Wall Street estimates by 8.3%.
Its rival, Delta Air Lines, Inc. (DAL), has fallen behind, with its shares declining marginally over the past six months and surging 7.2% over the past 52 weeks.
Analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from 21 analysts in coverage. Its mean price target of $128.44 represents an upside of 62.8% from the current market prices.
