11 Cheap NASDAQ Stocks to Buy According to Hedge Funds

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

Forward P/E Ratio as of April 21: 7.13

Number of Hedge Fund Holders: 86

United Airlines Holdings Inc. (NASDAQ:UAL) provides air transportation services in the US, Canada, the Atlantic, the Pacific, and Latin America. It transports people and cargo through its mainline and regional fleets. It also offers ground handling, flight academy, frequent flyer award non-travel redemptions, and maintenance services for third parties.

In FQ1 2025, United Airlines achieved a record $13.2 billion in total operating revenue, which was a 5.4% increase year-over-year. This performance is influenced by the company’s strategy of winning brand loyal customers. Despite the current macroeconomic challenges and fewer people wanting to travel in the main part of the plane within the US, United is still doing well. This is due to the focus on its 7 key hubs, that has positioned the company as a brand loyalty leader in 6 of them.

United Airlines Holdings Inc. (NASDAQ:UAL) is making investments to attract and retain brand-loyal customers. These include building new and larger clubs in key hubs like Houston, San Francisco, and Denver. It’s also installing Starlink’s high-speed Wi-Fi on its aircraft, with the first Starlink-enabled regional flight expected in spring 2025 and mainline aircraft by the end of 2025.

Patient Capital Management 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.”