UAL

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how United Airlines (NASDAQ:UAL) and the rest of the consumer discretionary - travel and vacation providers stocks fared in Q2. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Travel and vacation providers operate tour packages, cruise lines, online travel agencies, and vacation rental platforms, connecting consumers with leisure and business travel experiences. Tailwinds include robust post-pandemic travel demand, a consumer preference shift toward experiences over goods, and technology-enabled personalization improving conversion and loyalty. However, headwinds are significant: the industry is acutely sensitive to macroeconomic cycles, geopolitical instability, and fuel price volatility. Low switching costs mean fierce price competition, while capacity additions in segments like cruises can lead to oversupply. Regulatory burdens, weather disruptions, and public health risks further create episodic but potentially severe demand shocks. The 19 consumer discretionary - travel and vacation providers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.9% since the latest earnings results. Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes. United Airlines reported revenues of $17.67 billion, up 16% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. The market seems disappointed with the results as the stock is down 11.4% since reporting and currently trades at $107.19. Is now the time to buy United Airlines? Access our full analysis of the earnings results here, it’s free. Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services. Target Hospitality reported revenues of $85.46 million, up 38.7% year on year, outperforming analysts’ expectations by 7.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Target Hospitality scored the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $19.04. Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free. Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs. Hilton Grand Vacations reported revenues of $1.36 billion, up 7.3% year on year, falling short of analysts’ expectations by 2.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. As expected, the stock is down 21.7% since the results and currently trades at $40.27. Read our full analysis of Hilton Grand Vacations’s results here. One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights. Delta reported revenues of $19.76 billion, up 18.7% year on year. This result surpassed analysts’ expectations by 3.9%. Overall, it was a stunning quarter as it also put up a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations. The stock is down 11.8% since reporting and currently trades at $78.50. Read our full, actionable report on Delta here, it’s free. One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights. American Airlines reported revenues of $16.74 billion, up 16.3% year on year. This print met analysts’ expectations. However, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly. The stock is down 12.5% since reporting and currently trades at $12.94. Read our full, actionable report on American Airlines here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for United Airlines (UAL). Shares have added about 6.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is United due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for United Airlines Holdings Inc before we dive into how investors and analysts have reacted as of late. United Airlines reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. Passenger revenues increased 16.4% year over year to $16.10 billion. Domestic passenger revenues advanced 20.3%, while international passenger revenues rose 11.2%. Pacific revenues increased 18.7%, Europe gained 10.2% and Latin America improved 10.5%, partly offset by a 16.4% decline in the Middle East, India and Africa region. Consolidated passenger revenue per available seat mile increased 12.5%, while yield rose 12.1%. Premium revenues grew 16%, Basic Economy revenues advanced 11% and loyalty revenues increased 11%. Contracted business revenues jumped 27%, reflecting robust close-in demand. Traffic, measured in revenue passenger miles, increased 3.8%, while capacity rose 3.5%. With traffic growth slightly outpacing capacity expansion, the consolidated load factor improved 0.3 percentage points to 83.4%. United transported 48.7 million passengers, up 5.4% from the prior-year period. Domestic load factor declined 0.6 points to 83.5%, but the international load factor climbed 1.2 points to 83.2%. The airline also operated the 10 highest-volume passenger days in its history during June. Operating expenses rose 19.2% to $16.58 billion, outpacing revenue growth. Aircraft fuel expense surged 84.1% to $5.11 billion as the average fuel price increased 79.4% to $4.19 per gallon. Fuel consumption rose 2.7%. Cost per available seat mile increased 15.2% to 18.99 cents. CASM-ex, which excludes fuel, profit sharing, special items and third-party business expenses, rose 6.1% to 13.12 cents. Salaries and related costs increased 6.2%, while distribution expenses climbed 32.3%. Adjusted operating income fell 46.3% to $951 million, while the adjusted operating margin narrowed 6.2 percentage points to 5.4%. Adjusted pre-tax income declined 49.5% to $843 million, and the adjusted pre-tax margin contracted to 4.8% from 11%. Adjusted net income decreased 48.7% to $649 million. On a reported basis, net income fell 17.3% to $805 million, while diluted earnings declined to $2.46 per share from $2.97. The difference reflected special credits, including gains from aircraft sale-leaseback transactions. Operating cash flow totaled $1.61 billion during the quarter, while free cash flow came in at $322 million. Adjusted capital expenditures were $1.45 billion, reflecting continued spending on fleet and customer-facing investments. Available liquidity ended the quarter at $19.6 billion. Cash and cash equivalents totaled $10.17 billion, while short-term investments were $6.47 billion. Debt, finance lease obligations and other financial liabilities stood at $26.46 billion, and trailing-12-month net leverage was 2.2 times. United now expects adjusted earnings of $9-$11 per share for 2026. For the third quarter, adjusted earnings are projected between $2.50 and $3.50 per share, based on an assumed all-in fuel price of approximately $3.69 per gallon. Management expects third- and fourth-quarter TRASM growth to exceed the second quarter’s 12.1% increase. The airline anticipates recovering 80%-90% of the fuel-price increase in the third quarter and all of it by the fourth quarter. Adjusted capital expenditures are forecast at approximately $7.5 billion for 2026. United expects its mainline fleet to reach 1,173 aircraft by year-end, up from 1,122 at the end of the second quarter. The plan includes 323 Boeing 737 MAX aircraft, 100 Boeing 787s and 88 Airbus A321neo or XLR aircraft. Regional aircraft are expected to total 442. The airline had installed Starlink on more than 450 aircraft and expects nearly 1,000 installations by year-end. It also plans to introduce its first Airbus A321XLR into domestic service in the fall, followed by international deployment early next year. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -9.74% due to these changes. Currently, United has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, United has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. United is part of the Zacks Transportation - Airline industry. Over the past month, Delta Air Lines (DAL), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Delta reported revenues of $17.67 billion in the last reported quarter, representing a year-over-year change of +6.1%. EPS of $1.56 for the same period compares with $2.10 a year ago. Delta is expected to post earnings of $2.19 per share for the current quarter, representing a year-over-year change of +28.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.3%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Delta. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved an all-time high of over 30 million active riders, driven by the 'UP' strategy focusing on premium modes and specialized services like TBR Chauffeuring. Attributed record performance to 'customer obsession' and operational excellence, specifically citing improved pickup times that match or exceed competitors 75% of the time despite a smaller market share. Reached a milestone where approximately 30% of North American rides are linked to strategic partners like DoorDash and United Airlines, which typically attract higher-value riders. Reported significant growth in low-scale markets and Canada, where ride volume has nearly doubled year-over-year. Maintained strong driver supply and sentiment, citing a 30-point preference gap over competitors and record driver earnings up approximately 8% per ride year-on-year. Successfully transitioned autonomous vehicle fleet operations in Nashville from Waymo staff to Lyft staff, meeting all service level agreements during the handover. Expects to exceed 1 billion total rides in 2026, supported by accelerating ride growth across North America, Europe, and the bikes business in the second half of the year. Anticipates the launch of 'supply sharing' with Waymo in Nashville before the end of 2026, allowing riders to be matched with autonomous vehicles directly via the Lyft app. Projecting full global app integration by 2027, enabling users to book rides natively across international markets through a single unified Lyft interface. Q3 guidance assumes continued margin expansion driven by cost discipline and a favorable mix of higher-value modes, despite seasonal shifts in the bikes and European businesses. Strategic focus remains on deepening existing partnerships rather than aggressive new acquisitions, citing significant 'white space' for growth within current collaborations like DoorDash and Chase. The Freenow acquisition is currently undergoing a rebranding phase to 'Freenow by Lyft' in major European cities like Barcelona, Athens, and Dublin. The Nashville autonomous vehicle depot, an 80,000 square foot facility, is scheduled for a formal opening in October 2026 to support hundreds of vehicles. Management noted that while autonomous vehicle testing is expanding to London with Baidu, the near-term P&L impact remains de minimis due to the small scale of the current fleet. Seasonal dynamics in Q3 include a higher mix of bike rides, which carry lower average gross bookings per ride but offer strong unit economics. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is foundational across geographies, including large markets like New York and emerging markets like Canada. Product innovations such as Lyft Teens and Lyft Silver, combined with improved marketplace health (faster ETAs), are primary structural drivers. Management acknowledged external factors like the World Cup and seasonality provided a boost but emphasized that core operational improvements were the main catalysts. Management believes AVs expand the Total Addressable Market (TAM) rather than cannibalizing existing rides. In San Francisco, Lyft observed 20% rides growth in areas where AVs operate, suggesting a hybrid ecosystem where users may enter via AV and return via driver-led rides. The 11% gap is influenced by seasonal factors; Q3 is the peak for the bikes business, which has lower gross bookings per ride. The lapping of the Freenow acquisition and its specific European holiday patterns also impact the mix between bookings value and ride counts. Lyft will be evaluated on fleet management (maximizing vehicle availability) and 'supply sharing' (dynamic dispatching across a shared network). Success depends on four pillars: marketplace health, local policy navigation, real estate/depot operations, and AV technical integration.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Delta Air Lines stock has delivered a strong 124.7% return over the past 5 years, yet today's mixed valuation checks leave investors weighing how much upside is already reflected in the current US$87.44 share price. Over 5 years, a 124.7% total return suggests the market has already reassessed Delta Air Lines more positively and may now be more sensitive to changes in expectations. Recent headlines about United Airlines having explored a merger with Delta Air Lines highlight how consolidation hopes can support sentiment, while ongoing regulatory scrutiny of large airline deals may cap how much value investors are willing to ascribe to such scenarios. Delta Air Lines screens as undervalued on earnings multiples, yet the broader checks rate it at 4 out of 6 on value, which points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether Delta Air Lines' current valuation still leaves enough room for attractive future returns after such a strong multi year run. Delta Air Lines delivered 72.8% returns over the last year. See how this stacks up to the rest of the Airlines industry. The P/E ratio is a useful starting point for Delta Air Lines because earnings tend to matter a lot for how investors judge airline stocks. Right now Delta trades on a P/E of 14.5x, compared with an Airlines industry average of about 9.8x and a peer average of roughly 14.0x. That puts the stock at a premium to the wider sector but roughly in line with close peers. The more tailored fair P/E ratio, which factors in Delta Air Lines' size, profitability profile and risk, sits at 31.4x. This is more than double the current multiple. Despite last year's merger headlines around United Airlines drawing extra attention to the sector, the P/E still prices Delta at a large discount to what this framework suggests might be reasonable. On balance, Delta Air Lines stock appears undervalued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. For Delta Air Lines, Simply Wall St Narratives pick up where the valuation puzzle leaves off. They spell out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth materially more or less than it is today, and each one focuses on the underlying drivers rather than a single multiple or model output so you can compare those assumptions with actual results over time. The Narratives sit on Simply Wall St's Community page and are designed to help you see how different outlooks translate into different implied values for Delta Air Lines' stock. Community views on Delta Air Lines sit far apart, with one camp seeing durable margin support and the other focused on thinner cushions and macro risks. Bull case: 17% undervalued Read the full Bull Case to see why Delta Air Lines could be undervalued Bear case: 38% overvalued Read the full Bear Case to see why Delta Air Lines could be overvalued Do you think there's more to the story for Delta Air Lines? Head over to our Community to see what others are saying! For Delta Air Lines, the current P/E signals an undervalued stock relative to its tailored earnings multiple, yet the broader checks still point to a mixed picture rather than a clear bargain. The market already prices in some resilience, so the key question is whether earnings quality and margins can justify any further re rating from here. The crux of the debate is whether Delta Air Lines can sustain enough profitability buffer in a cyclical, capital intensive business for that apparent discount to be an opportunity instead of the market correctly pricing the risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

JetBlue (JBLU) jumped 9% after the airline beat Q2 adjusted EPS estimates and setting a 2028 profit target of at least $1 per share, pushing the stock 33% higher YTD. Delta (DAL) and United (UAL) rose moderately on JetBlue's demand read, despite neither carrier reporting company-specific news Tuesday. JetBlue's GAAP net loss widened to $247 million as fuel costs surged 81%, leaving full-year operating margin still guided negative despite the rally. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. Shares of JetBlue Airways (NASDAQ:JBLU) are up 9% to $5.94 in Tuesday midday trading after the carrier posted a Q2 2026 adjusted-EPS beat, reinstated its full-year outlook, and introduced a long-term 2028 profit target of at least $1 per share. The move is lifting the broader airline group even as JetBlue's headline GAAP loss actually widened. JetBlue stock is now up 33% year to date (YTD) after Tuesday's pop, and the read-through to industry demand is what's bidding up peers. None of the other carriers had clear, company-specific catalysts Tuesday. This is a turnaround-optimism rally powered by adjusted metrics and forward targets while GAAP profitability remains out of reach. Fuel costs still surged, and JetBlue's full-year operating margin is still guided negative. JetBlue's Q2 revenue rose 14.5% year over year (YoY) to $2.7 billion, in line with the $2.69 billion consensus, with unit revenue (RASM) up 10.9%. Its adjusted loss of $0.66 per share beat the $0.6828 loss expected. JetBlue recaptured 50% of higher fuel costs in Q2, ahead of the 30% to 40% pace that had been expected, with full recapture expected by early 2027. The airline reinstated full-year 2026 guidance calling for RASM growth of 10% to 12.5%, an adjusted operating margin of -2% to -5%, and a full-year 2026 jet fuel price of about $3.49 per gallon. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. CEO Joanna Geraghty stated that the company is "introducing a long-term financial target of at least $1 in earnings per share for 2028" as JetBlue continues its path toward sustained profitability. Its JetForward turnaround program has already generated $470 million of cumulative incremental EBIT and is targeted at $1.2 billion by 2028. Delta Air Lines (NYSE:DAL) shares are up 3% to $88.80, and United Airlines (NASDAQ:UAL) shares are up 2% to $123.22, both moving on JetBlue's demand read. Neither carrier reported news of its own Tuesday. Southwest Airlines (NYSE:LUV) shares are up 2% to $46.06, and American Airlines Group (NASDAQ:AAL) shares are trading up 1% to $15.11. The move fits the pattern where a single carrier's unit-revenue beat can pull the whole tape higher. Shares of the U.S. Global Jets ETF (NYSEARCA:JETS) are up 3% to $31.80. The JETS ETF is a concentrated, single-sector airline product, so it can provide substantial gains on days like this and may also bring drawdowns when fuel costs spike or travel demand softens. The bull case on JetBlue leans on the revenue beat, the 10.9% RASM gain, faster-than-expected fuel recapture, JetForward execution, and the credibility of the 2028 EPS target. Premium RASM climbed 13%, loyalty revenue grew 13% YoY, and Fort Lauderdale unit revenue rose 11% despite 40% capacity growth in the market. The turnaround narrative has a track record behind it, too. JetForward delivered $305 million of incremental EBIT in 2025, above its $290 million target, and is guided to at least $310 million more in 2026. That gives the 2028 goal some execution credibility as JetBlue scales BlueFirst domestic first class, its Boston BlueHouse lounge, and the Blue Sky partnership with United Airlines. The bear case is real, though. JetBlue's GAAP net loss widened to $247 million from $74 million a year ago as average fuel cost surged 81% to $4.23 per gallon, and full-year operating margin is still guided negative. Investors should consider keeping their position sizes modest given the execution risk on a long-dated 2028 goal and JetBlue stock's beta of 1.73. Market watchers can watch for whether JetBlue stock holds above the prior $5.56 average analyst target after Tuesday's rally and whether Q3 2026 RASM guidance of 12.5% to 16.5% is corroborated by peer commentary. Traders can also monitor WTI crude oil at $79.04 per barrel, since jet fuel remains the single biggest swing factor for JetBlue's 2026 margin path. JetBlue's Q2 delivered enough good news to power a double-digit rally and pull peers Delta, United, Southwest, and American with it, though the story remains a slow turnaround rather than a clean profit inflection. The next checkpoints come from other airline earnings reports and any move in the crude complex. For investors seeking exposure through the U.S. Global Jets ETF, the same concentration note applies to their portfolios. After all, airline stocks tend to move together on fuel and demand headlines. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Delta Air Lines didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

The second-quarter earnings season for the Zacks Transportation sector kicked off on July 10, with Delta Air Lines DAL exceeding bottom-line estimates. A couple of other S&P 500 components — United Airlines UAL and J.B. Hunt Transport Services JBHT — have also reported quarterly numbers since Delta. A host of transportation companies are due to report their respective financial numbers shortly. Per the Earnings Preview report dated July 17, while the transportation sector’s earnings for second-quarter 2026 are expected to decline 4.5%, revenues are likely to grow 9.3% on a year-over-year basis. We have identified — with the help of the Zacks Stock Screener — a few transportation players that are set to outshine the Zacks Consensus Estimate with respect to the bottom line this earnings season. These include Union Pacific Corporation UNP, Norfolk Southern Corporation NSC, Old Dominion Freight Line ODFL and United Parcel Service UPS. Before we discuss the companies, let’s take a look at the factors shaping the quarterly performance. The transportation market held up better than many expected in the second quarter of 2026. Despite geopolitical tensions and elevated fuel prices, factors like buoyant air-travel demand and the improving freight scenario seem to have supported the transportation companies. It seems that most people have adapted to the still-high inflation, high interest rates and policy uncertainty, choosing to adjust their budget accordingly. Following a prolonged period of downturn, things appear to be brightening as far as freight demand is concerned.Highlighting the brightening freight demand scenario, the Cass Freight Shipments Index improved 3% month on month in May 2026. This measure has improved month on month in four of the past five months, which confirms the improving scenario. The 1.2% year-over-year May decrease with respect to the Cass Freight Shipments Index was the smallest reduction in the past 18 months, further attesting to the improvement. Moreover, many watchers expect freight rates to increase in the current year. In a bid to improve efficiency, companies are investing big time in AI, thereby reducing the cost structure and promoting safety. Cost optimization and automation are helping protect profitability. Increased efficiencies through cost-reduction measures are likely to have boosted the bottom-line performance in the June quarter. Additionally, second-quarter performance of most shipping stocks in the sector is likely to have been boosted by the resilience displayed by the dry bulk sector owing to factors like rising Chinese demand for minor bulk and high vessel utilization. While it is not possible to be sure about which companies are well-positioned to beat earnings estimates, our proprietary methodology — Earnings ESP — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with the abovementioned combination, the chances of an earnings beat are as high as 70%. For investors seeking to apply this proven model to their portfolio, we have highlighted four Transportation stocks that are poised to beat second-quarter earnings estimates. Headquartered in Omaha, NE, Union Pacific operates a rail network spanning 23 states across the western two-thirds of the United States, serving as a vital component of the global supply chain. The railroad operator currently has an Earnings ESP of +0.34% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is scheduled to report its second-quarter 2026 results on July 23. Union Pacific’s efforts to reward its shareholders through dividends and share buybacks are commendable. With the freight scene on the mend, the company’s performance is likely to have been aided. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion), with the average beat being 2.3%. Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote Norfolk Southern is another railroad operator. The company currently has an Earnings ESP of +0.21% and a Zacks Rank of 3. Cost cuts and an improving freight scenario should aid its second-quarter results. The company is scheduled to report its second-quarter 2026 results on July 23. Norfolk Southern’s efforts to reward its shareholders through dividends and share buybacks are commendable. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average beat being 6.5%. Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote Old Dominion Freight Line is a leading less-than-truckload or LTL company. The trucking company is based in Thomasville, NC. The company has an Earnings ESP of +1.02% and a Zacks Rank of 2. Old Dominion, whose second-quarter results are likely to be aided by the brightening freight environment, is scheduled to report its second-quarter 2026 results on July 29. Old Dominion’s efforts to reward its shareholders through dividends and share buybacks are commendable. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once), with the average beat being 3.7%. Old Dominion Freight Line price-eps-surprise | Old Dominion Freight Line Quote United Parcel Service’s second-quarter results are likely to reflect its focus on improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations, and leveraging AI for logistics planning to boost efficiency. The shift in focus toward higher-margin areas such as small and medium-sized businesses, or SMBs and healthcare logistics from low-margin volumes is expected to be reflected in UPS’ second-quarter results, scheduled to be released on July 28, and to aid its per-package revenues. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once), with the average beat being 10.6%. The company has an Earnings ESP of +1.06% and a Zacks Rank of 3. United Parcel Service price-eps-surprise | United Parcel Service Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP) : Free Stock Analysis Report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delta Air Lines DAL) and United Airlines UAL) have both delivered better-than-expected Q2 results, demonstrating that demand for premium, international, and corporate travel remains resilient despite significantly higher fuel costs. Both carriers exceeded Wall Street's earnings expectations and expressed confidence in the second half of the year. However, they took slightly different approaches to guidance. Delta reaffirmed its full-year outlook despite the challenging fuel environment, while United became even more optimistic by raising its earnings forecast. For those looking to capitalize on the continued strength in the airline industry, the question is whether Delta's operational consistency or United's accelerating earnings momentum makes for the better investment. Last Friday, Delta reported Q2 adjusted EPS of $1.56, topping expectations of $1.51 despite an expected dip from last year's record Q2 profit of $2.10 per share. This came on a quarterly peak in revenue at $17.66 billion, which increased 14% year over year but slightly missed estimates of $17.76 billion. Premium travel, corporate demand, and international routes remained key growth drivers. The quarter was particularly impressive considering Delta absorbed the highest quarterly fuel expense in company history, with fuel costs surging roughly 77% from a year ago due to higher oil prices. Despite the headwind, Delta generated approximately $1.4 billion in adjusted pre-tax income while maintaining an industry-leading balance sheet. Perhaps most encouraging was management's outlook. Delta reaffirmed its full-year adjusted EPS guidance range of $6.50-$7.50 while maintaining expectations for $3 billion-$4 billion in free cash flow. Management also projected continued momentum during the September quarter, expecting double-digit operating margins as premium demand remains healthy. Delta further rewarded shareholders by announcing a 15% dividend increase. Image Source: Zacks Investment Research Reporting Q2 results this week, United Airlines posted the more bullish earnings report. Adjusted EPS reached $1.99, comfortably ahead of expectations of $1.92 despite a dip from a quarterly peak of $3.87 per share a year ago. Still, United posted a new record in quarterly revenue as well, at $17.67 billion, which was up 16% YoY but very narrowly missed estimates. Strong growth across premium cabins, loyalty programs, cargo operations, and international travel helped offset sharply higher fuel expenses. The company highlighted record passenger volumes while continuing to expand its global network and premium offerings. Most impressive, United raised the low end of its full-year adjusted EPS guidance to $9.00-$11.00, up from its prior outlook of $7.00-$11.00. Notably, United acknowledged that fuel prices remain volatile but believes stronger pricing and revenue trends should allow the airline to recover most of those higher costs over the remainder of the year. Image Source: Zacks Investment Research Delighting investors is that both stocks have impressively outperformed the benchmark S&P 500 in the last three years and even the Nasdaq, although United’s gains of more than 120% have noticeably topped Delta’s 85%. Image Source: Zacks Investment Research Despite their strong rallies, both airlines continue to trade at valuations that offer steep discounts to the broader market. United typically commands the lower forward earnings multiple, reflecting its more cyclical earnings profile and greater sensitivity to economic conditions. Delta generally trades at a modest premium to United because investors have historically assigned higher multiples to its stronger balance sheet, more consistent profitability, premium revenue mix, and industry-leading operational execution. Still, after a very extensive rally and more explosive earnings growth, United stock certainly stands out with a forward P/E of 11X compared to Delta’s 13X. Image Source: Zacks Investment Research Income investors have a clear favorite. Delta currently pays a dividend yielding roughly 1%, and management reinforced its confidence in future cash generation by announcing the 15% dividend increase following its Q2 report. United, meanwhile, does not currently pay a dividend, choosing to prioritize debt reduction, aircraft investments, and strengthening its balance sheet following the pandemic. While United may offer greater earnings leverage during favorable airline cycles, Delta remains the more appealing option for investors seeking a combination of capital appreciation and residual income. Image Source: Zacks Investment Research Delta and United delivered impressive Q2 reports that reinforced the strength of the airline industry's recovery despite elevated fuel costs. For investors seeking a steadier long-term compounder with a dividend, industry-leading margins, and more predictable cash flows, Delta Air Lines appears to be the more balanced investment. Those with a higher risk tolerance looking for stronger earnings acceleration may prefer United Airlines, particularly after management raised its full-year profit outlook. That said, both stocks currently land a Zacks Rank #3 (Hold), although United is likely to reattain a buy rating as earnings estimate revisions should move higher in the coming weeks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delta and United both managed to beat earnings expectations despite soaring fuel prices. Delta posted record revenue but saw margins pressured by rising fuel expenses. United offset higher costs with operational changes and raised its outlook. As soaring fuel prices tested airline profitability, both United Airlines Holdings Inc. (UAL) and Delta Air Lines Inc. (DAL) beat Wall Street's second-quarter expectations. But while Delta delivered record revenue and maintained its outlook, United went a step further: raising its full-year earnings guidance despite billions in additional fuel costs, a move that has strengthened the case for the carrier as the stronger airline stock heading into the second half of 2026. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox For years, airlines enjoyed strong demand as travelers returned after the pandemic and accepted higher ticket prices. In 2026, rising oil prices pushed up costs and created a tougher challenge for airlines to manage expenses. The Q2 financial prints highlight a stark industry-wide headwind: a sudden, massive surge in fuel prices that has added billions in unplanned operating costs. Delta reported absorbing the highest quarterly fuel expense in its history, with average fuel prices reaching $3.93 per gallon, while United reported a staggering $2.3 billion year-over-year increase in fuel expense for Q2 alone, pushing its average fuel price to $4.19 per gallon. Despite rising fuel costs, both airlines beat Wall Street’s expectations by raising fares, expanding premium travel, and strengthening loyalty programs. The key difference emerged in what came next: while Delta maintained a more cautious outlook, United increased its 2026 earnings forecast. Delta reported adjusted revenue of $17.7 billion with adjusted earnings of $1.56 per share, premium products overtaking main cabin revenue, and a 15% dividend hike. Delta's adjusted fuel expense skyrocketed 77% year-on-year to $4.4 billion, with the average price per gallon jumping 75% to $3.93. Although Delta remains highly profitable, the sudden jump in fuel costs eroded its operating margins, which fell from double-digit levels to 8.8%. United, reporting days later, posted adjusted EPS of $1.99, 16% revenue growth, 12% RASM (Revenue Per Available Seat Mile) gains driven by higher fares and product investments, and most compellingly raised full-year adjusted EPS guidance to a range of $9.00 to $11.00 despite disclosing a massive $6 billion increase in anticipated fuel costs. United responded strongly to the fuel cost increase by quickly adjusting its operations. Under CEO Scott Kirby, the airline reduced less profitable flights, focused on higher-value routes and managed to protect earnings. As a result, United’s revenue climbed 16% from a year earlier to $17.67 billion, in line with analyst expectations. United Airlines (UAL) provided a stronger earnings outlook compared with Delta Air Lines (DAL). For the third quarter of 2026, United expects adjusted EPS between $2.50 and $3.50, while Delta sees an EPS of $2.00 to $2.50. For the full year, United increased its adjusted EPS guidance to $9.00 to $11.00, whereas Delta maintained its existing outlook of $6.50 to $7.50. Morgan Stanley analyst Ravi Shanker increased his price target for United Airlines to $190 from $185 while maintaining an ‘Overweight’ rating on the stock, implying a 60% upside to the stock’s last closing price. The analyst said the airline industry is entering a period in which carriers have greater ability to increase fares as customers continue to accept higher travel costs. Shanker’s view centers on a major change in the industry’s long-term business model. Airlines have historically struggled with cycles of excess capacity and weak pricing, but tighter industry discipline and stronger consumer demand could help carriers maintain healthier margins. The analyst said United’s recent Q2 performance supports the argument that airlines are moving away from years of aggressive competition that pressured profits. Instead, companies are focusing more on controlling capacity, attracting premium travelers and improving revenue quality. Delta’s shares trade at a higher valuation, with a price-to-earnings (P/E) multiple of 10.3. United, meanwhile, appears more affordable based on its current valuation with a P/E multiple of 9.2. Delta remains a strong airline, but United may offer a better opportunity for investors in a difficult market. The airline managed higher fuel costs, improved its operations and increased its earnings forecast. Its growth prospects and lower valuation could make it more attractive for investors watching the airline sector. UAL, DAL Stocks: Retail Continues To Favor United Airlines On Stocktwits, retail sentiment around UAL remained in ‘bullish’ territory while sentiment for DAL dropped to ‘bearish’ from ‘bullish’ territory the previous day. So far this year, UAL stock has gained 6%, while DAL stock has jumped 24%. Also See: GE Stock Heads For Second Weekly Loss Despite Strong Q2 And Outlook: Retail Cries 'Buying Opportunity' For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. 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Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. United Airlines Holdings has delivered a very strong 151.5% total return over the past 5 years, and the current valuation picture now sits in a middle ground where the Discounted Cash Flow (DCF) intrinsic value estimate points to fair value while market multiples still lean inexpensive. Over 5 years, United Airlines Holdings has returned 151.5%, which puts recent price action in focus when judging whether the stock is still attractive at current levels. Recent commentary around pricing discipline, capacity choices and operational reliability can support earnings quality, but operational issues such as the San Francisco flight delays highlight execution risk that may affect how investors price the stock. On Simply Wall St's broader checks, United Airlines Holdings screens as a mixed case with 4 out of 6 valuation metrics suggesting the shares are not a clear bargain or clearly expensive. The issue now is whether United Airlines Holdings' current price already reflects that mixed but improving story, or if there is still a margin of safety left in the valuation. United Airlines Holdings delivered 36.7% returns over the last year. See how this stacks up to the rest of the Airlines industry. The Discounted Cash Flow (DCF) approach here uses projected free cash flows to estimate what United Airlines Holdings could be worth today. The model starts from latest twelve month free cash flow of about $3.1b and assumes those cash flows continue growing, rather than shrinking, over time. On that basis, the DCF arrives at an intrinsic value of about $129 per share. Against the current share price, the DCF points to the stock trading at roughly a 6.0% discount to that intrinsic value, which puts United Airlines Holdings in a zone that is closer to fairly priced than deeply cheap. The recent Q2 earnings beat, with higher fuel costs still being absorbed, helps explain why the market is not pricing the stock at a steep discount to its cash flow estimate. Overall, the DCF output suggests United Airlines Holdings looks about fairly valued on current cash flow assumptions. United Airlines Holdings is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for United Airlines Holdings. The P/E multiple is a useful way to look at United Airlines Holdings because earnings are a key focus for investors in airline stocks. United currently trades on a P/E of about 10.7x, which is lower than the broader peer average of around 25.9x and also modestly above the Airlines industry average of roughly 9.6x. According to Simply Wall St’s model, a more tailored fair P/E for United Airlines Holdings, taking into account its risk profile, business mix and market context, is estimated at around 18.6x. This is higher than the current 10.7x and indicates the stock is trading at a discount relative to where this framework suggests it might sit if it were priced more in line with those fundamentals. On the P/E multiple, United Airlines Holdings stock currently appears undervalued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for United Airlines Holdings build on the valuation puzzle above by explaining which future outcomes for growth, margins and earnings would need to occur for the stock to be worth materially more or less than today's price. They appear on the Community page so you can see different viewpoints. Each narrative links its numbers to clear assumptions about where United Airlines Holdings' growth, profitability and risk profile may go next, giving you a reference point to revisit as fresh information becomes available. Community views on United Airlines Holdings sit quite far apart, with one side focused on premium upside and the other on rising long term costs and risk. Bull case: 11% undervalued Read the full Bull Case to see why United Airlines Holdings could be undervalued Bear case: 8% overvalued Read the full Bear Case to see why United Airlines Holdings could be overvalued Do you think there's more to the story for United Airlines Holdings? Head over to our Community to see what others are saying! For United Airlines Holdings, the Discounted Cash Flow (DCF) estimate points to intrinsic value close to the current share price, so the stock no longer looks like a clear bargain on cash flows alone. The earnings multiple still screens as undervalued, which suggests that sentiment and peer comparisons are more cautious than the DCF suggests. Overall checks sit in a mixed zone, which leaves the key consideration as whether United Airlines Holdings can convert its capacity plans and operational discipline into durable earnings without letting execution risks erode that apparent discount. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]