RCL - United Airlines: About To Shock The Market
2024-06-27 17:57:09 ET
Summary
- United Airlines Holdings, Inc. stock has slumped despite strong Q2 guidance, with a $10 EPS target for the year.
- The airline's financial position is strong with $14 billion in cash, $40 billion in PP&E, and net debt of only $13 billion.
- United Airlines could potentially start returning capital to shareholders through share buybacks, signaling confidence in the company's future, while the stock trades at only 4x EPS targets.
Not even a month ago, United Airlines Holdings, Inc. ( UAL ) confirmed strong guidance for Q2, yet the stock has slumped to recent lows. The airline confidently guided to a $10 EPS for the year, reminiscent of the guidance from cruise line Royal Caribbean Cruises Ltd. ( RCL ), but the stocks have traded in opposite directions. My investment thesis remains ultra-Bullish on the airline due to the deep valuation and market disconnect. ...
United Airlines: About To Shock The Market