10 Best Upside Stocks To Buy Right Now

7. United Airlines Holdings Inc. (NASDAQ:UAL)

Upside Potential as of March 10: 58.06%

Number of Hedge Fund Holders: 86

United Airlines Holdings Inc. (NASDAQ:UAL) is a global airline that delivers passenger and cargo transportation across a network that spans continents. Beyond its core flight operations, it provides essential services like ground handling, maintenance, and a frequent flyer program.

In Q4 2024, the company’s international flights were more profitable than its domestic flights. Pacific PRASM (Passenger Revenue per Available Seat Mile)  increased 4.1% year-over-year, with a 31% increase in seat capacity to pre-pandemic levels. Atlantic PRASM rose 7.1% without additional seats. There was a 1.6% increase in TRASM (Total Revenue per Available Seat Mile) and a 6.2% increase in ASM (Available Seat Mile), which resulted in a 50.6% rise in operating income. Business and premium passenger revenues grew 16% and 10% respectively.

For 2025, the company projects to earn $11.50 to $13.50 per share, which will be an 8.3% to 27% increase over 2024’s $10.61. This year, the company will utilize smaller 737s for intra-Asian routes, use its Guam hub for US-Asia travel, and improve seat utilization on existing international flights.

Patient Capital Management is bullish on the company due to its strong performance, improved customer satisfaction, and growing market dominance. It stated the following regarding United Airlines Holdings Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:

“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”