Sarat Sethi, Managing Partner, Douglas C. Lane & Assoc. United Airlines Holdings UAL-Q HOLD Apr 06, 2022

As US air travel breaks all time records, we select UAL as a TOP PICK.  The FAA just cleared them to continue expansion plans following the recent spat of flight mishaps.  It trades at 6x earnings, under 2x book and supports a 33% ROE.  Cash reserves are growing, while debt is aggressively retired.  We recommend setting a stop-loss at $41, looking to achieve $68 -- upside potential of 30%.  Yield 0% 

Our PAST TOP PICK with UAL has triggered its stop at $41.  To remain disciplined, we recommend covering the position at this time.  

Our PAST TOP PICK with UAL is progressing well.  To remain disciplined, we recommend trailing up the stop (from $47) to $71 at this time.

Our PAST TOP PICK with UAL is progressing well.  To remain disciplined, we recommend trailing up the stop (from $71) to $87 at this time.

Our PAST TOP PICK with UAL is progressing well.  To remain disciplined, we recommend trailing up the stop (from $87) to $96 at this time.  

Our PAST TOP PICK with UAL has triggered its stop at $96.  To remain disciplined, we recommend covering the position at this time.

We reiterate UAL as a TOP PICK.  Earnings will be released around mid-month and the market has already factored in a 7% decline in EPS.  As customer air miles travelled is set to hit an all time high, we think this is a good time to add to our previous guidance.  It trades at 7x earnings, 2x book and supports a robust 33% ROE.  We recommend trailing up the stop (from $54) to $63, looking to achieve $99 -- upside potential of 23%.  Yield 0%