United Airlines Vs. Southwest Airlines: Which Stock Offers More Upside?
Portfolio Pulse from Surbhi Jain
United Airlines Holdings Inc (UAL) and Southwest Airlines Co (LUV) are set to report their Q4 earnings on Jan. 22 and Jan. 25, respectively. Both airlines have operational and financial differences, with United serving a global market with diverse fleet and Southwest focusing on domestic flights with a streamlined fleet. United has a market cap of $12.8 billion and Southwest $17.9 billion. United's net income on a TTM basis is $2.86 billion with $52.49 billion in revenue, while Southwest's is $497 million with $25.44 billion in revenue. United's covered ratio is 3.05, higher than Southwest's 1.34. Analyst consensus estimates suggest United could offer a 60.33% upside, while Southwest may see an 8.8% downside.
January 22, 2024 | 7:13 pm
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NEGATIVE IMPACT
Southwest Airlines, focusing on domestic flights with a streamlined fleet, faces a potential 8.8% downside as per analyst consensus estimates. The Q4 earnings report on Jan. 25 will be crucial for investors.
Analyst consensus estimates suggest a downside for LUV, which could be exacerbated by the Q4 earnings report on Jan. 25. The focus on domestic flights and the current valuation may not favor the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
United Airlines, with a global market presence and a diverse fleet, has a potential 60.33% upside according to analyst consensus estimates. The company's Q4 earnings report on Jan. 22 will be a significant indicator of its financial health.
The positive analyst consensus estimates and the upcoming Q4 earnings report make UAL a stock to watch. The potential upside is significant, and the earnings release will likely provide further insights into the company's financial trajectory, influencing the stock price in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80