UAL Corp (UAUA-Q)

Is was a momentum stock, which are now selling off. Is -24% the past month, but it's cheap and the travel outlook is strong. Buy some here and the rest at $70.

It reports Tuesday. He expects a huge beat, because UAL is benefiting from a lack of competition and planes, lifting ticket prices ever higher. It's one of the best performers of 2024.

Though up 139% this year, there's still room to run. The estimates are too long. Sales estimates for 2025 have not budged for the past 9 months. Makes no sense when you look at passenger volumes and increase in ticket prices. Meanwhile, jet fuel prices have fallen. Earnings must go higher than priced in now.

Is rallying 14% after earnings. There were low expectations coming into that report. 

The market is overly fearful about the airlines, given war in the Middle East and a weak forecast by UAL today. They are highly profitable companies and are paying down their debt. Flight demand is hanging in there. These stocks consistently beat the estimates.