Is United Airlines (UAL) Expected to Post Impressive Earnings This Week?

We recently published a list of 10 Stocks Expected To Post Impressive Earnings This Week. In this article, we are going to take a look at where United Airlines Holdings, Inc. (NASDAQ:UAL) stands against other stocks expected to post impressive earnings this week.

The earnings season is in full flow as we kick off the week with earnings from big names like Netflix and United Airlines. Most of the big names are expecting a positive earnings report with some even hitting 52-week highs in anticipation of the upcoming earnings.

The S&P is up 0.5% while the Dow is about to hit the 1% mark, reflecting the positive sentiment among the US traders.  We decided to compile a list of the top names scheduled to announce their earnings this week, looking at what was driving the optimism behind their earnings.

To come up with the list of 10 stocks expected to post impressive earnings this week, we only considered stocks with a market cap of over $30 billion that are scheduled to announce their earnings this week.

A bird’s eye view of a large commercial jetliner taking off from an airport runway.

United Airlines Holdings, Inc. (NASDAQ:UAL)

United Airlines Holdings, Inc. (NASDAQ:UAL) is set to announce earnings later today and the stock is already up 2% in anticipation. The airline stock is expected to report a revenue of $14.34 billion with an EPS of $3.03. The EPS would be a 51% YoY increase, though the stock has already run up 13% this year so far, potentially meaning that extraordinary EPS growth is priced in.

Despite that bull run, the stock is valued quite attractively. It is trading at 8.4 times forward earnings which is reasonable considering the rising demand for air travel. United Airlines (NASDAQ:UAL) is also buying back its stock, with a $1.5 billion buyback program already in place. This is the first time in years that the airline is executing a stock buyback, so investors can look forward to shareholder-friendly moves by the management in the near term.

Overall, UAL ranks 3rd on our list of stocks expected to post impressive earnings this week. While we acknowledge the potential of UAL as a leading AI investment, our conviction lies in the belief that some 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 as promising as UAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.