United Airlines (UAL) is a Leading Value Stock: Is It Worth Investing In?

Unlocking the Potential of Stock Market Investing

No matter your background or level of expertise, maximizing your returns and investing confidently are universal ambitions among investors. Zacks Premium provides a variety of resources to help you achieve these goals.

Subscribers gain access to daily updates on Zacks Rank and Industry Rank, the exclusive Zacks #1 Rank List, comprehensive Equity Research reports, and advanced stock screening tools. These features are designed to empower you with knowledge and boost your investing confidence.

Among its offerings, Zacks Premium includes the innovative Zacks Style Scores.

Understanding Zacks Style Scores

Zacks Style Scores are a specialized rating system that evaluates stocks according to three widely-used investment strategies. Developed to complement the Zacks Rank, these scores help investors identify stocks with the greatest likelihood of outperforming the market in the near term.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An 'A' rating signifies the highest potential, followed by 'B', 'C', and so forth, indicating that higher scores correlate with better prospects for outperformance.

The Style Scores are divided into four distinct categories:

Value Score

Value investors seek undervalued stocks before their true worth is recognized by the broader market. The Value Score utilizes metrics such as P/E, PEG, Price/Sales, Price/Cash Flow, and other ratios to highlight stocks that are both appealing and currently trading at a discount.

Growth Score

Growth-focused investors prioritize companies with robust financials and promising future prospects. The Growth Score analyzes projected and historical earnings, sales, and cash flow to pinpoint stocks likely to deliver sustained growth.

Momentum Score

Momentum investing centers on capitalizing on price trends and earnings outlook shifts. The Momentum Score helps identify optimal moments to invest, using indicators like weekly price changes and monthly earnings estimate revisions.

VGM Score

If you prefer a blended approach, the VGM Score combines all three Style Scores. This comprehensive metric, used alongside the Zacks Rank, evaluates stocks based on their weighted value, growth, and momentum attributes, helping you focus on companies with the strongest overall profiles.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary stock rating system that leverages changes in earnings estimates to guide investors toward building successful portfolios.

Historically, stocks rated #1 (Strong Buy) by Zacks have delivered an average annual return of +23.86% since 1988, far surpassing the S&P 500. However, with over 200 Strong Buy and 600 Buy-rated stocks available daily, narrowing down your choices can be daunting.

Style Scores help simplify this process.

To optimize your investment outcomes, focus on stocks with Zacks Rank #1 or #2 and Style Scores of A or B. If considering stocks rated #3 (Hold), prioritize those with high Style Scores to maximize potential gains.

Always pay attention to the direction of earnings estimate revisions, as Style Scores are designed to work in tandem with the Zacks Rank.

Stocks rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, are likely to face declining earnings forecasts and increased risk of price drops.

Therefore, owning more stocks with top Zacks Ranks and high Style Scores increases your chances of success.

Featured Stock: United Airlines (UAL)

Headquartered in Chicago, United Airlines Holdings was formerly known as United Continental Holdings until its rebranding in June 2019. The company oversees both United Airlines and Continental Airlines.

Currently, UAL holds a #3 (Hold) rating on the Zacks Rank and boasts a VGM Score of A.

Its Value Style Score is also A, supported by favorable valuation metrics such as a forward P/E ratio of 8.44, making it attractive to value investors.

Over the past 60 days, five analysts have raised their earnings estimates for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.19 to $13.34 per share. UAL has achieved an average earnings surprise of +7.7%.

With strong Zacks Rank and top Value and VGM Scores, United Airlines Holdings stands out as a compelling option for investors.

Top Analyst's "Best Pick to Double"

Out of thousands of stocks, five Zacks experts have each selected their top candidate for a potential 100% gain in the coming months. From these, Director of Research Sheraz Mian has singled out one with the most explosive upside potential.

This company targets millennial and Gen Z consumers, generating nearly $1 billion in revenue last quarter. A recent dip in its share price presents an attractive entry point. While not all picks achieve their targets, this one could outperform previous Zacks selections, such as Nano-X Imaging, which surged +129.6% in just over nine months.