IB Net Payout Yields Model

United Airlines: Strong Read From Delta's Earnings

Update - Oct. 16, 2024

United Airlines has soared to post-Covid highs after a strong Q3. The airline now expects a 2024 EPS of $10+ for a stock only reaching $70 today after the 10% rally. 

  • Q3 Non-GAAP EPS of $3.33 beats by $0.16.
  • Revenue of $14.8B (+2.5% Y/Y) beats by $70M.
  • Announced a $1.5B share buyback program, with $500M to be purchased during the remainder of 2024.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
  • Finviz Chart

    Original article posted on Oct. 11

    • United Airlines is favored over Delta following the IT outage.
    • The airline sector is normalizing post-Covid, with United well-positioned for higher profitability and potential capital returns to shareholders.
    • United trades at 5x 2025 EPS targets, with a projected 14% earnings growth, and has significantly reduced its debt, enhancing financial stability.
    With a legacy airline struggling with an IT outage, United Airlines Holdings, Inc. (NASDAQ:UAL) has taken flight to post-Covid highs. The airline stock is still incredibly cheap, but whether or not the market will reward the stock with a viable market valuation is a far different story. My investment thesis remains ultra Bullish on United Airlines looking for a further move higher.


    Read the full article on Seeking Alpha

    Disclosure: Long UAL. Please review the disclaimer page for more details. 

    Comments

    Popular posts from this blog

    ChargePoint: Low Quality Beat

    Occidental: Still Producing Too Much Oil

    Aurora Cannabis: Deal Or No Deal