Here's Why United Airlines Stock Soared This Week
It's been a good week for airline stocks, with United Airlines (NASDAQ: UAL) and others enjoying double-digit returns over the last week. For example, United stock is up 12.8% in the week to Friday morning.
There have been many positive trading updates and third-quarter guidance upgrades in the sector recently, and this week's move builds on it. Investors were concerned about relatively high interest rates putting pressure on consumer spending, and widely reported issues with overcapacity.
A combination of the two usually leads to collapsing ticket prices and airlines stuck running less profitable routes. However, in mid-September, Alaska Air upgraded third-quarter guidance, discussed more robust demand than expected, and said its revenue per available seat mile (RASM) was improving again. Similarly, Allegiant Travel raised its third-quarter earnings guidance recently.
Source Fool.com
United Continental Holdings Stock
With 17 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
With a target price of 64 € there is a slightly positive potential of 18.61% for United Continental Holdings compared to the current price of 53.96 €.
