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Apr 06, 2021
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United Airlines (UAL, $59.68) and Alaska Air (ALK, $73.57) got rating boost from Morgan Stanley

United Airlines (UAL, $59.68) and Alaska Air (ALK, $73.57) got rating boost from Morgan Stanley

Morgan Stanley upgraded ratings on United Airlines  and Alaska Air Group.

The bank boosted United shares rating was to equal weight from underweight. It raised Alaska Air shares to overweight from equal weight.

Morgan Stanley initiated coverage of American Airlines  with an  underweight rating.

“We reiterate our attractive view on the U.S. airlines, despite the stocks [rising] 85% in the last five months,” wrote Morgan Stanley analyst Ravi Shanker. The analyst cited an expected  “ clear path to re-opening” as he mentioned that  consensus figures are too low given Morgan Stanley’s  view of strong volume and cost tailwinds. “We are about 30%+ above consensus in 2023,” Shanker said.

 

Related Ticker: UAL

UAL's RSI Oscillator recovers from oversold territory

The RSI Indicator for UAL moved out of oversold territory on October 20, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 28 similar instances when the indicator left oversold territory. In 23 of the 28 cases the stock moved higher. This puts the odds of a move higher at 82%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on UAL as a result. In 65 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.

The Moving Average Convergence Divergence (MACD) for UAL just turned positive on October 27, 2026. Looking at past instances where UAL's MACD turned positive, the stock continued to rise in 33 of 44 cases over the following month. The odds of a continued upward trend are 75%.

Following a +6.92% 3-day Advance, the price is estimated to grow further. Considering data from situations where UAL advanced for three days, in 235 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.

UAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

The 50-day moving average for UAL moved below the 200-day moving average on October 28, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where UAL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.

The Aroon Indicator for UAL entered a downward trend on October 29, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 42 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 45 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. UAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 61 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.026) is normal, around the industry mean (2.029). P/E Ratio (9.661) is within average values for comparable stocks, (5.677). UAL's Projected Growth (PEG Ratio) (6.503) is slightly higher than the industry average of (2.252). UAL's Dividend Yield (0.083) is considerably higher than the industry average of (0.028). P/S Ratio (0.552) is also within normal values, averaging (0.529).

Notable companies

The most notable companies in this group are Delta Air Lines (NYSE:DAL), United Airlines Holdings (NASDAQ:UAL), Southwest Airlines Co (NYSE:LUV), American Airlines Group (NASDAQ:AAL), JetBlue Airways Corp (NASDAQ:JBLU).

Industry description

Airlines industry comprises passenger air transportation, including scheduled and non-scheduled routes. This can include charter airlines, as well as regular commuter ones. Discount pricing and the rise of low-cost carriers over recent decades have expanded the industry by making its services accessible to a much larger global population, compared to the older days when airline travel was a relative luxury for many people in the world. Delta Air Lines Inc., Southwest Airlines Co and United Continental Holdings, Inc. are some of the airlines with the largest stock market capitalizations in the U.S.

Market Cap

The average market capitalization across the Airlines Industry is 9.85B. The market cap for tickers in the group ranges from 384.9K to 1.51T. AZULD holds the highest valuation in this group at 1.51T. The lowest valued company is AIBEF at 384.9K.

High and low price notable news

The average weekly price growth across all stocks in the Airlines Industry was 2%. For the same Industry, the average monthly price growth was -10%, and the average quarterly price growth was -4%. ULCC experienced the highest price growth at 31%, while AZUL experienced the biggest fall at -33%.

Volume

The average weekly volume growth across all stocks in the Airlines Industry was -9%. For the same stocks of the Industry, the average monthly volume growth was -12% and the average quarterly volume growth was -51%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 40
P/E Growth Rating: 48
Price Growth Rating: 59
SMR Rating: 66
Profit Risk Rating: 75
Seasonality Score: 30 (-100 ... +100)
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General Information

a holding company with interest in transporting people and cargo through mainline operations, which utilize full-sized jet aircraft

Industry Airlines

Industry
Airlines
Address
233 South Wacker Drive
Phone
+1 872 825-4000
Employees
113200
Web
https://www.united.com
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United Airlines (UAL, $59.68) and Alaska Air (ALK, $73.57) got rating boost from Morgan Stanley