Think It's Too Late to Buy United Airlines? Here's the Biggest Reason Why There's Still Time.

As United Airlines Holdings, Inc. (UAL) stock has been on a rollercoaster ride in recent months, investors may be wondering if it's too late to buy into the airline giant. With a year-to-date (YTD) return of over 135%, United Airlines has outperformed the broader market and its peers in the airline industry. However, the stock has also experienced significant volatility, with a sharp decline in January 2025 followed by a strong recovery. So, is it still a good time to invest in United Airlines? Let's dive into the data and find out.



First, let's address the elephant in the room: United Airlines' stock price has been highly volatile, with a YTD return of over 135% but also a significant drawdown in January 2025. However, it's essential to remember that volatility is not the same as risk. United Airlines' stock price has been highly correlated with the broader market, suggesting that its volatility is more a function of market conditions than company-specific risks.

Now, let's look at the fundamentals. United Airlines' revenue growth has been strong, with a 19.49% increase in 2023 compared to 2022. This growth is higher than that of many of its competitors in the airline industry. Additionally, United Airlines' earnings growth is forecast to be 21.1% per year over the next three years, which is higher than the US Airlines industry average of 33.76% and the US market average of 18.43%. These strong fundamentals suggest that United Airlines is well-positioned to continue its growth trajectory.



Another reason to be optimistic about United Airlines is its strong balance sheet. The company has a low debt-to-equity ratio of 0.33, indicating that it has a strong financial position to weather economic downturns and other challenges. Additionally, United Airlines' return on equity (ROE) is forecast to be 38.82%, which is higher than the US Airlines industry average of 56.29% and the US market average of 49.32%. This suggests that United Airlines is efficient in generating returns for its shareholders.

So, is it too late to buy United Airlines? Based on the data, the answer is no. United Airlines' stock price has been volatile, but its fundamentals remain strong. The company's revenue growth, earnings growth, and ROE are all higher than the industry averages, suggesting that United Airlines is well-positioned to continue its growth trajectory. Additionally, the company's strong balance sheet indicates that it has a solid financial position to weather challenges.

Investors should also consider the potential for United Airlines to benefit from a recovery in the airline industry. As the global economy recovers from the COVID-19 pandemic, demand for air travel is expected to increase. United Airlines, with its strong fundamentals and solid financial position, is well-positioned to capitalize on this recovery.

In conclusion, it's not too late to buy United Airlines. The company's strong fundamentals, solid financial position, and potential to benefit from a recovery in the airline industry make it an attractive investment opportunity. However, as with any investment, it's essential to do your due diligence and consider your risk tolerance before making a decision.