Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks
17 Feb

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

United Airlines (UAL)

United Airlines Holdings is based in Chicago. The carrier changed its name from United Continental Holdings to United Airlines Holdings in June 2019. It is the holding company for both United Airlines and Continental Airlines.

UAL is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 8X for the current fiscal year compared to the Transportation - Airline industry's P/E of 9.7X. Additionally, UAL has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 5.3X. Value investors should also note UAL's Price/Sales ratio of 0.6X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $1.22 to $12.96 per share. UAL has an average earnings surprise of 22.9%.

UAL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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