United Airlines Holdings, Inc. (UAL), headquartered in Chicago, Illinois, is a leading American airline offering services such as transportation, catering, ground handling, and maintenance. Valued at a market cap of $26.5 billion, the company operates air transportation services across the Americas, Asia, Europe, Africa, and the Pacific.

Shares of UAL have substantially outperformed the broader market over the past year. Over the past 52 weeks, UAL stock has risen 131.1%, while the S&P 500 Index ($SPX) returned 35.2% over the same time frame. In 2024, UAL soared 95% compared to SPX’s 20.1% gain on a YTD basis.

Narrowing the focus, UAL has surpassed the US Global Jets ETF’s (JETS) 56% rise over the past 52 weeks and 21.7% return in 2024.

UAL has outperformed the broader market over the past year, aided by strong quarterly update in mid-October. The airline's domestic operations have been particularly strong, with premium cabin offerings and basic economy volumes seeing significant increases. A resurgence in business travel, fueled by corporate return-to-office policies, adds to UAL’s positive outlook. 

On October 29, UAL saw a 1.3% increase as airline and transportation stocks gained strength amid declining oil prices, following a 6% drop on Monday.

Additionally, the company reported its Q3 earnings on Oct. 15, surpassing expectations with an adjusted EPS of $3.33 and operating revenue of $14.8 billion, which sent its shares up 12.4% in the following trading session. 

For the current fiscal year, ending in December, analysts expect United Airlines to report an EPS growth of 1.3% year over year to $10.18. The company has a history of surpassing consensus EPS estimates in its quarterly reports. 

Among the 19 analysts covering the UAL stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”

This configuration is more bullish than a month before, with 15 analysts recommending a “Strong Buy.”

On October 21, Jefferies Financial Group Inc. (JEF) analyst Sheila Kahyaoglu raised the price target on United Airlines from $75 to $95, maintaining a “Buy” rating. She noted that the company's management is successfully working towards doubling pre-tax margins from around 8% in 2024 and emphasized that UAL’s goal of becoming the preferred carrier in both Premium and Economy segments is a multi-year journey with ongoing benefits.

UAL’s mean price target of $85.45 represents a premium of 6.2% to current price levels. The street-high target of $108 indicates a potential upside of 34.2% from current price levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.