Opinions Joe Terranova
United Airlines HoldingsUALDON'T BUYApr 15, 2024
Joe TerranovaStock price when the opinion was issued
As of May 29, 2026. Market Open.
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Premium contentOur PAST TOP PICK with UAL has triggered its stop at $95. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 24%, when combined with our previous guidance.
Premium contentPremium contentPremium contentPremium contentWe 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%
(Analysts’ price target is $98.95)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.
Premium contentPremium contentPremium contentPremium contentPremium contentPremium contentAs 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)
They report tomorrow and probably will report a loss. Delta which he also owns looks a lot better technically. It comes down to Boeing's delays in delivering 737 Max's.