Latest 13F filings show that billionaire Stanley Druckenmiller‘s Duquesne Family Office increased its holding in United Airlines Holdings, Inc. (NASDAQ: UAL) by over 200%, ending the June quarter with 794,795 shares.
United Airlines Holdings, Inc. (NASDAQ: UAL) recent quarterly results showed revenue jumped 16% year over year. EPS also beat expectations, despite declines due to fuel cost pressures. Management said the company sees a recovery in fuel cost pressure in fiscal Q3, with full recovery by Q4.
Valuation
UAL trades at a forward P/E of 12.10, a 43% discount to the industrials sector median of 21.24. The stock looks even cheaper on a growth-adjusted basis: its forward PEG ratio of 0.68 is well below the sector median of 1.69, meaning the market is pricing in far less earnings growth than analysts actually expect. Consensus estimates put UAL’s P/E falling to 8.11 by 2027 and 6.93 by 2028, as EPS growth is projected to jump 49% in 2027 and another 17% in 2028, after a flat 2026. If the company hits those targets, the stock would look severely underpriced at today’s $124.50, and that gap is what would eventually push the price higher as investors catch on.
Bull Case
Longer-term, bulls say UAL has shifted its focus from volume growth to margin expansion through premiumization: premium seating, loyalty programs, and co-branded credit cards. New initiatives like United Relax Row seating, Starlink WiFi, and DIRECTV live sports streaming are likely to add value. Bulls say this marks a major shift from a commoditized business to something closer to a brand-loyal business, and this would benefit the company over the long term. An expected decline in fuel prices amid a slowdown in the Iran conflict is also seen as a tailwind.
Bear Case
However, bears say the Iran war is far from over, and fuel costs remain a pressure point. Labor costs are still a problem: flight attendants approved a five-year contract during the quarter, resulting in a $500 million charge for retroactive pay, with that cost expected to grow further. Competitive pressure from Delta is rising too, as Delta expands at LAX, a market where United has historically held the edge as the largest international carrier.
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