Summary:

  • United Airlines (UAL) soared on Wednesday morning, trading 7% higher after the company beat Wall Street expectations.
  • Based on its positive market cycles, we believe this stock will continue to push higher.

United reported earnings per share of $2.41 and total revenue of $10.5 billion, above analyst estimates of $2.01 and $10.4 billion. For the fiscal year, management forecasted earnings of $10-12 per share, which was in line with the $10.96 average estimate.

CEO Oscar Munoz said, “United delivered proof, not just promises in 2018 – even in the face of significant headwinds from higher than expected fuel costs.”He also said that the impact from the federal government shutdown was “not significant,” which was different from Delta’s assessment.

In analyzing the market cycles for UAL, we can see that the stock is now in the rising phase of its current cycle. As the stock made a higher high in the last cycle, we believe there is still more room to run in the near and intermediate terms. Our target tests the previous peak, near $98.

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.