United Airlines' (UAL) sales and profits have been increasing. On Thursday, it achieved an important milestone. According to MarketSmith the Relative strength (RS) rating for United Airlines stock rose more than 20 points, to 84. The previous day, the rating was 63.
United Airlines has reported earnings growth over the last four quarters of 137%. Then, it showed a loss per share of 63 cents. The company had warned in March of its likely loss due to seasonal factors. The 63-cents loss is a huge improvement on the $4.24 it lost in the same quarter last year as the pandemic continued.
Sales growth is soaring. The company's revenue grew 51% last quarter to $11.43 Billion as more business and vacation travelers took to the skies. The growth rate of 51% followed previous gains of 121% and 66%.
United Airlines Stock Rated among Best Overall
United Airlines has a 97 Composite rating out of 99. IBD's composite rating combines five technical and fundamental ratings in order to give a quick indicator of the top-performing stocks. It also has a 73 Earnings per Share Rating that is OK, but not great. This is due in part to the Q1 earnings outlier. It has a B- Accumulation/Distribution Rating, indicating that funds are buying its shares.
Scott Kirby, CEO of United, said in the earnings news release on April 18 that "we are watching macroeconomic risks closely, but demand is strong, especially overseas, where we're growing twice as fast as domestically." He also said that United is confident about its full-year 2023 projected adjusted earnings target between $10 and $12 per share.
Forming a Pattern with Buy Point
United Airlines has a consolidation pattern that includes a buy point of 55.14. Check if the volume can be at least 40% more than normal. United Airlines' stock rose by 0.8% on Thursday to 48.13. The stock has closed higher in the last five sessions.
Delta Air Lines and Ryanair, the discount airline from Ireland (RYAAY), are also amongst the highest-rated stocks in this group.
When you are looking for the best stocks to watch and buy, pay attention to price relative strength.
Investor's Business Daily's exclusive Relative strength rating tracks price movements with a score ranging from 1 (worst to 99 (best). The score compares a stock's performance in the past 52 weeks to all other stocks within our database.