United Airlines has been growing its sales and profits. And on Thursday it reached an important milestone, with the Relative Strength (RS) Rating for United Airlines stock rising more than 20 points to 84, according to MarketSmith, up from 63 the day before.
Over the last four quarters, United Airlines reported earnings growth of 137%, 373%, 254% and then a seemingly puzzling 63-cents per share loss. Looking deeper though shows that the company telegraphed in March that it would likely face a loss amid seasonal factors. Also, the 63-cent loss was a big improvement over its $4.24 loss the same quarter a year earlier as the pandemic dragged on.
Its sales growth is flying high. Last quarter its revenue rose 51% to $11.43 billion as more vacation and business travelers take to the skies. The 51% growth rate followed gains of 121%, 66% and 51% the prior three quarters.
United Airlines Stock Rated Among Best Overall
Among its other ratings, United Airlines stock has an excellent 97 Composite Rating, out of 99. IBD's Composite Rating combines five other technical and fundamental ratings to provide an easy indicator of top performing stocks. Additionally it has an OK but not yet great 73 Earnings Per Share Rating, in part due to the outlier Q1 earnings report. It has a B- Accumulation/Distribution Rating, indicating that funds are buying its shares.
When United announced first quarter earnings results on April 18, CEO Scott Kirby commented in the earning news release that, "We are watching the macroeconomic risks carefully, but demand remains strong, especially internationally, where we are growing at twice the domestic rate." He added that the company remains confident in its projected full year 2023 adjusted earnings target of $10 to $12 per share.
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Forming A Pattern With Buy Point
United Airlines is working on a consolidation pattern with a 55.14 buy point. See if it can break out in volume at least 40% higher than normal. On Thursday, United Airlines stock rose 0.8% to 48.13. It's closed higher for the last five trading sessions in a row.
United Airlines stock holds the No. 3 rank among its peers in the Transportation-Airline industry group. Discount Ireland carrier Ryanair and Atlanta-based Delta Air Lines are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily tracks price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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