1. United Airlines Holdings Inc. (NASDAQ:UAL)
Year-to-Date Performance as of October 11: 45.73%
Forward Price-to-Earnings Ratio: 5.01
Number of Hedge Fund Holders: 56
United Airlines Holdings Inc. (NASDAQ:UAL) is one of the largest airline carriers in the US, offering a range of domestic and international flights, serving destinations across North America, Europe, Asia, and other parts of the world. It is known for its extensive network, frequent flyer program, and commitment to customer satisfaction.
It partnered with SpaceX to provide high-speed Starlink Wi-Fi on its aircraft. This groundbreaking agreement, the largest of its kind in the aviation industry, will offer passengers free, fast, and reliable internet connectivity. With plans to equip over 1,000 aircraft with Starlink, the company is poised to revolutionize inflight internet access. Passengers can expect to enjoy live TV, streaming, social media, shopping, and gaming during their flights. Testing is scheduled to begin in early 2025, with the first passenger flights featuring Starlink service later that year.
The company transported a record-breaking 44.4 million passengers in Q2 2024. It also set a daily record by serving 565,000 travelers. Additionally, its international capacity surpassed its closest US competitor by 35%. The overall revenue generated in this quarter was $14.99 billion, up 5.70% year-over-year. The earnings per share value was $4.14. Revenue from key markets among frequent business travelers grew by 11%, while total passenger revenue increased by 5%. Premium revenues rose by 8.5%, driven by strong demand for premium seats.
It’s expanding its international network for next summer with 8 new destinations. United Airlines Holdings Inc. (NASDAQ:UAL) remains on track for further growth in its industry. The company’s focus on safety, operational efficiency, and customer satisfaction positions it for continued success.
ClearBridge Value Equity Strategy stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its fourth quarter 2023 investor letter:
“Our industrials stocks faced headwinds early in the quarter due to fears of a recession, which weighed on some of our more cyclical industrials such as United Airlines Holdings, Inc. (NASDAQ:UAL). Additionally, the Fed’s pivot and the prospect of rate cuts in 2024 helped fuel a rally in lower-quality industrials that we did not hold, further dampening the performance of our high-quality holdings.”
While we acknowledge the growth potential of United Airlines Holdings Inc. (NASDAQ:UAL), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. 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.
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