- NASDAQ: UAL has been declining once again to the $32 handle.
- Earnings, coronavirus figures, and stark warnings have been weighing on United Airlines Holdings.
- Bargain seekers may find interest in the stock, potentially triggering volatility.
"The most difficult quarter" – that is the description that United Airlines Holdings used to describe the second quarter, in which the 94-year old aviation veteran lost some $1.6 billion according to GAAP standards.
Coronavirus has hit the airline industry hard, as countries banned entry, people refrained from entering closed spaces, and as the economic downfall also hurt customers' ability to travel. Moreover, the transfer to remote working has substantially accelerated – high-margin business travel is out of vogue.
United Airline Holdings' share prices tumbled early in the year but did investors seem to have brushed off the recent earnings report. While NASDAQ: UAL has failed to recover from the lows – alongside its peers and in contrast to the broader stock market – it is holding its ground.
UAL's resilience stands out as the US – Untied's main market – continues reporting high numbers of COVID-19 cases and deaths.
What does not fall in bad times, has room to rise when things improve. Is United ready to take off? The Chicago-based company may have to wait for the virus to spread more slowly before the mass market joins in. However, bargain-seekers may check-in and board their planes – at least for a speculative flight.
It is essential to note that American Airlines had its share of volatility that included substantial increases in prices – even though it suffered turbulence and air pockets. That could happen to United as well.
United Airlines Holdings stock
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The round $20 level served as a floor under NASDAQ: UAL. The 52-week low is at $17.80, but it was only a swing low. Te first upside target is $40, followed by $45. Returning to $80 depends on resolving the virus situation.
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