Boeing’s newly disclosed software glitch on some 737 MAX jets has put United Airlines Holdings (UAL) under fresh scrutiny, even though the carrier says none of its operating 737s use the affected version.
United Airlines Holdings has seen its share price retreat 18% over the past 90 days and slip 2.2% on the day to about $111.51, even as its 1-year total shareholder return of roughly 13% and very strong 3-year total shareholder return suggest longer term momentum has been far more positive.
Spot fast-moving airline peers reacting to safety and reliability themes around United Airlines Holdings by scanning our hand picked 30 resilient stocks with low risk scores for sturdier balance sheets and lower risk profiles.United Airlines Holdings is producing solid financial results and still carries the scars of a turbulent sector. After a sharp pullback, is this a robust carrier offered at a reasonable valuation, or already fully appreciated?
Most Popular Narrative: 31% Undervalued
On the most followed view, United Airlines Holdings screens as undervalued, with a narrative fair value of $162.15 against the recent $111.51 close. This puts a spotlight on what might drive that gap to close.
Execution of the United Next fleet modernization and capacity expansion strategy, particularly upgauging to larger, more fuel-efficient aircraft with more premium seats, will unlock further operational leverage, reduce per-seat operating costs, and drive operating margin improvement over the next several years.
See why 72 investors see United Airlines Holdings as 31% undervalued.
Result: Fair Value of $162.15 (UNDERVALUED)
Still, the United Airlines Holdings story could be knocked off course if higher financial leverage bites during a downturn, or if congestion and reliability issues at key hubs persist and erode premium customer demand.
Find out about the key risks to this United Airlines Holdings narrative.
Next Steps
Mixed signals around United Airlines Holdings can create strong opinions fast, so move quickly and test the underlying data yourself. Start with the 5 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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