Opinions
The Panic-Proof Portfolio (Stockchase Research)
United Airlines Holdings
UAL-Q
PAST TOP PICK
Jul 04, 2023
Stock price when the opinion was issued
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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%
(Analysts’ price target is $68.67)Yesterday, they reported a surprisingly strong quarter with in-line sales, an earnings beat, but share flatlined today. Why? UAL offered 2 sets of guidance--one for a stable economy and the other for a recession. That's a brilliant idea. Bookings could be stable or weaken. Both forecasts are certainly possible.
Our PAST TOP PICK with UAL is progressing well. We recommend trailing up the stop (from $40) to $44 at this time.