15 NASDAQ Stocks with the Lowest P/E Ratios

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

Forward P/E ratio: 6.06

No. of Hedge Fund Holders: 86

United Airlines Holdings, Inc. (NASDAQ:UAL) is a leading airline company engaged in air transportation services across North America, Europe, Asia, the Pacific, Africa, Latin America, and the Middle East. The company serves both passengers and cargo through its mainline and regional fleets. United Airlines Holdings has started installing Starlink on its aircraft, with its first installation completed on its regional aircraft on March 7.

Wall Street analysts seem optimistic about United Airlines Holdings, although they have concerns regarding the lacklustre airline industry outlook. On March 12, Barclays analyst Brandon Oglenski maintained an Overweight rating on UAL shares with a slight adjustment in price target from $150 to $140. Despite the economic challenges in the industry, United Airlines Holdings, Inc. (NASDAQ:UAL) has done a commendable job dealing with challenges related to reliability and costs. It is the time for the company to reap the rewards now.

In the fourth quarter of 2024, United Airlines Holdings, Inc. experienced a 1.6% year-over-year increase in total revenue per available seat mile, driven by a 6.2% rise in capacity. The company reported record quarterly earnings, with an EPS of $3.26 outperforming expectations, and contributed to a full-year EPS of $10.61, exceeding market estimates. United Airlines Holdings gathered around $3.4 billion in FCF and reduced its debt by almost $7.4 billion in 2024.

While we acknowledge the potential of UAL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

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