The airlines have a solid history of reporting strong profits now, but the market is still acting like 2020 is more the norm. United Airlines Holdings, Inc. (NASDAQ:UAL) has maintained strong profit forecasts due to a focus on International travel, yet the market doesn’t care. My investment thesis remains ultra Bullish on the airline stock not being given credit for massive ongoing profits.
Profit Machine
While some airlines have struggled due to issues with domestic capacity and higher fuel costs, United Airlines has maintained rather robust EPS forecasts. Our investment case for a double made when the stock traded above $50 isn’t altered by the current turbulence in the sector, yet the stock is far lower now.
United Airlines just reported a quarter where the airline reported a $3.65 EPS for just Q3 alone. The stock currently trades at just 11x the one quarterly EPS alone.
Remember, Q3 wasn’t even the best quarter, with United…