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