UNITED AIRLINES (#UAL) Weekly Special Report based On 1.00 Lot Calculation:
GLOBAL AIRLINES MARKETS:
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GLOBAL AIRLINE TO KEEP IMPROVING IN 2025: The global aviation market is anticipated to continue its recovery post-pandemic, with net profits projected to reach approximately $26.5 billion and revenues expected to grow by 8.1% to around $980 billion. Passenger traffic is forecasted to surpass 2019 levels, expanding at an average annual rate of 3.2%.
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EXPECTED MARKET GROWTH AT 3.6%: The global airlines market, valued at $350 billion in 2023, is expected to grow to over $480 billion by 2032, maintaining a CAGR (Cumulative Annual Growth Rate) of 3.6%.
UNITED AIRLINES GROUP (#UAL):
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THE COMPANY: United Airlines Holdings, Inc. is one of the largest airline companies in the world, recognized for its extensive global network and comprehensive service offerings. According to recent data, United operates a fleet of over 800 aircraft and employs approximately 90,000 people worldwide.
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3RD LARGEST AIRLINE IN THE USA: United Airlines ranks as the third-largest airline in the United States by revenue, following American Airlines and Delta Air Lines.
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STOCK INDEX PARTICIPATION: UNITED AIRLINES stock is part of the S&P 500 (USA500) index.
ANALYSIS AND EVENTS:
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EVENT (TUESDAY, JANUARY 21, AFTERMARKET): Q4 EARNINGS REPORT. United Airlines is expected to print $14.349 billion in revenue for Q4 of 2024. This is an increase of 5.3% from the same period last year ($13.626 billion). In addition, the company is expected to post Earnings Per Share (EPS) of $3.03, which would be an increase of 46.5% from the same period last year ($2.00).
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COMPANY EARNINGS PERFORMANCE (LAST 8 QUARTERS): According to Bloomberg, United Airlines has beaten earnings expectations 8 times over the past 8 quarters and beaten revenue expectations 7 times over the past 8 quarters.
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LAST TIME (OCTOBER 15, 2024, AFTERMARKET): THE COMPANY BEATS Q3 ESTIMATES; STOCK ROSE 15.49%. United Airlines beat revenue estimates of 14.77 billion dollars, printing a figure of 14.84 billion dollars for Q3 of 2024. Meanwhile, the company printed EPS of $3.33, beating analysts’ estimates for $3.13. STOCK PERFORMANCE ON OCTOBER 16, 2024: The stock rose 15.49% to hit a session high of $73.49, up from its open price of $63.63.
Please note that past performance does not guarantee future performance.
OTHER ANALYSIS:
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CHINA LUNAR NEW YEAR (JANUARY 29 – FEBRUARY 12): According to Reuters, the annual travel rush for China's Lunar New Year celebrations has begun, with authorities expecting a record 9 billion domestic trips to take place in the 40-day festival time. This is up from the around 8.4 billion trips logged last year. Air travel is expected to exceed 90 million trips. Internationally, flights to Tokyo, Osaka, Bangkok and Singapore are also seeing strong demand, according to the civil aviation regulator.
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STATISTICS (CHINA LUNAR NEW YEAR 2024 (FEBRUARY)): UNITED AIRLINES STOCK ROSE 10.33% IN FEBRUARY 2024. The United Airlines Stock rose 10.33% during the month of February 2024 as travelling in China due to the Lunar New Year increased demand for airline services across the globe. Last year, the event took place between February 10 to February 17, but travelling began earlier before February 10 and ended much later after February 17. (Data Source: MetaTrader 4 Platform).
Please note that past performance does not guarantee future performance.
PRICE ACTION:
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THE STOCK HIT A NEW ALL TIME HIGH IN JANUARY 2025 ($110.75): United Airlines stock hit an all-time high of $110.75 on January 10, 2025. The current price stands at $107. Moreover, if the Barclays forecast ($150) is realized, this would provide an upside potential of around 40%. However, it could also decline.
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UNITED AIRLINE STOCK PERFORMANCE IN 2024: +136.43%.
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ANALYST OPINION: Barclays forecasts $150; Evercore forecasts $135; Morgan Stanley forecasts $130; Goldman Sachs forecasts $125.
#UAL, JANUARY 15, 2025
Current Price: 107.00
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United Airlines |
Weekly |
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Trend direction |
|
|
150.00 |
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|
135.00 |
|
|
118.00 |
|
|
98.00 |
|
|
95.00 |
|
|
90.00 |
Example of calculation based on weekly trend direction for 1.00 Lot1
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United Airlines |
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Pivot Points |
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Profit or loss in $ |
43,000.00 |
28,000.00 |
11,000.00 |
-9,000.00 |
-12,000.00 |
-17,000.00 |
|
Profit or loss in €² |
41,753.25 |
27,188.16 |
10,681.06 |
-8,739.05 |
-11,652.07 |
-16,507.10 |
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Profit or loss in £² |
35,230.16 |
22,940.57 |
9,012.37 |
-7,373.76 |
-9,831.67 |
-13,928.20 |
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Profit or loss in C$² |
61,705.81 |
40,180.53 |
15,785.21 |
-12,915.17 |
-17,220.23 |
-24,395.32 |
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1.00 lot is equivalent of 1000 units.
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Calculations for exchange rate used as of 08:45 (GMT) 15/01/2025.
There is a possibility to use Stop-Loss and Take-Profit.
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You may wish to consider closing your position in profit, even if it is lower than suggested one.
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Trailing stop technique could protect the profit.