7 Cheap Transportation Stocks to Buy According to Analysts

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

Average Analyst Price Target Upside as of September 20: 33.22%

PE Ratio (FWD) as of September 20: 5.41

Number of Hedge Fund Holders: 56

United Airlines Holdings, Inc. (NASDAQ:UAL) plays a vital role in global air transportation, offering extensive services across North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America.

With a comprehensive mainline and regional fleet, it not only transports passengers but also moves cargo. Additionally, the airline provides catering, ground handling, flight training, and maintenance services to third-party clients, further diversifying its revenue streams.

In 2023, the company expanded its operational footprint, serving nearly all destinations worldwide, including 213 domestic and 135 international locations. With nearly 4,865 daily departures, the airline transported over 160 million customers throughout the year, which is evidence of its strong market presence and commitment to meet travel demand.

United Airlines (NASDAQ:UAL) has overwhelming Buy ratings from analysts. As of September 20, the average price target of $69.50 has an upside of 33.22% from the current levels. It ranks 3rd on our list of cheap transportation stocks to buy according to analysts.

In the second quarter, CEO Scott Kirby highlighted the company’s success in attracting a diverse customer base, which includes premium travelers, Basic Economy customers, and frequent domestic flyers. He mentioned that the broad appeal, combined with a strong loyalty program and a commitment to customer service, has enabled the airline to achieve margins that rank among the highest in the industry.

In a record-setting quarter, United Airlines (NASDAQ:UAL) carried 44.4 million passengers, making it the highest number of customers transported in the company’s history for that period. The airline also achieved a daily record, accommodating 565,000 passengers in a single day. Operating nearly 2,700 daily flights, it executed the largest schedule in its history for the second quarter, offering the most extensive domestic services in the U.S. and Canada. Its international schedule was 35% larger than that of the next largest U.S. competitor in terms of available seat miles, which further shows the company’s significant market position.

In Q2, 56 hedge funds had investments in United Airlines (NASDAQ:UAL), with positions worth $1.468 billion. PAR Capital Management is the top investor in the company and has a position worth $221.843 million, as of June 30.