2. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders as of Q4: 86
Navellier & Associates’ Equity Stake: $5.77 Million
United Airlines Holdings, Inc. (NASDAQ:UAL), a major U.S. airline headquartered in Chicago, Illinois, operates one of the most extensive domestic and international route networks in the world, covering the United States and six continents. As a founding member of the Star Alliance and with regional service provided by independent carriers under the United Express brand, the airline connects more destinations globally than any other. United’s history dates back to the late 1920s, beginning with the establishment of Varney Air Lines in 1926 by Walter Varney, who would later also help found the predecessor to Continental Airlines. Over the decades, United has consistently ranked among the largest airlines globally, largely through strategic mergers and acquisitions that expanded its network and market presence.
In 2024, United Airlines Holdings, Inc. (NASDAQ:UAL), which operates United Airlines, delivered a strong financial performance, surpassing market expectations and demonstrating operational resilience. For the fourth quarter, the airline posted earnings per share (EPS) of $3.26, exceeding the forecasted $2.93 by 11.3%, and achieved revenue of $14.7 billion, outperforming estimates of $14.34 billion. This solid financial standing was reinforced by operational improvements, resulting in a pre-tax margin of 9.7% in Q4, an increase of 3.5 percentage points year-over-year.
As one of Louis Navellier’s new stock picks, the hedge fund currently owns 59,446 shares in United Airlines Holdings, Inc. (NASDAQ:UAL), with a stake of $5.77 million.
Looking ahead to 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) projects EPS growth of approximately 18% at the midpoint, with an expected range between $11.50 and $13.50. The airline plans to expand its fleet with the delivery of 71 new narrowbody and 10 widebody aircraft over the year and expects to have 70% of its aircraft interiors upgraded by the end of 2025. These strategic investments aim to drive greater efficiency, customer satisfaction, and sustained profitability.
Patient Capital Management stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:
“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”
