United Flying High on Big Money Buys

UAL is the holding company for United and Continental airlines. The company’s planes have been carrying more passengers than in the past, which is driving business growth. Similarly, the company is repurchasing $1.5 billion of its shares to deliver more capital to shareholders. And the carrier enjoys more labor stability than peers due it holding contracts with four of its five major work groups.

As for its finances, United’s third-quarter earnings report for fiscal 2024 showed strong per-share earnings growth above the highest range of guidance, to $3.33. Overall revenue grew 2.5%, to $14.8 billion on the back of record passenger numbers (552,000). UAL’s technology investments seem to be paying off as well in more favorable customer metrics. These number could improve when the company releases earnings next week.

It’s no wonder UAL shares are up more than 180% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves United

Institutional volumes reveal plenty. UAL has enjoyed strong investor demand of late, which we believe to be institutional support.

Each green bar signals unusually large volumes in UAL shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with United.

United Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, UAL has had strong sales and earnings growth:

• 3-year sales growth rate (+54.1%)
• 3-year earnings growth rate (+164.8%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +23.3%.

Now it makes sense why the stock has been powering to new heights. UAL has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

United has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 multiple times in the last year. The blue bars below show when UAL was a top pick…making shares rise over time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

United Price Prediction

The UAL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in UAL at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.