13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

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3. United Airlines Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 86

Forward P/E Ratio as of March 12: 6.44

United Airlines Holdings, Inc. (NASDAQ:UAL) is one of the most undervalued stocks, offering air transportation services across North America, Europe, Asia, the Pacific, Africa, Latin America, and the Middle East, carrying both passengers and cargo through its mainline and regional fleets. On March 7, United Airlines announced the installation of Starlink on its first regional aircraft. Beginning in May, the airline aims to equip over 40 regional aircraft each month, continuing through the end of 2025. This upgrade will provide passengers with high speed, free in-flight Wi-Fi and expanded entertainment options while also simplifying installation, maintenance, and overall operations.

In Q4 2024, United Airlines Holdings, Inc. (NASDAQ:UAL)’s total revenue per available seat mile increased by 1.6% year-over-year, driven by a 6.2% rise in capacity. The Sunday after Thanksgiving became the airline’s highest revenue day, exceeding the previous record by 25%. The company posted record quarterly earnings, with EPS of $3.26 outperforming expectations, and a 9.7% pretax margin, up 3.5 points from the prior year. Strong revenue performance contributed to full-year EPS of $10.61, surpassing market projections. UAL also generated $3.4 billion in free cash flow and reduced its debt by $7.4 billion in 2024.

According to Insider Monkey’s fourth quarter database, 86 hedge funds were bullish on United Airlines Holdings, Inc. (NASDAQ:UAL), in contrast to the previous quarter when 54 funds had invested in the stock.

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