Why You Shouldn’t Invest in United Airlines This Week

Something that all investors should know about the stock market is how unpredictable it can be. 

In essence, some stocks can go through what some might see as a success streak, only to become lacklustre. What should an investor do when this happens? 

Sometimes, it might serve to just wait for the stock to recover. Other times, it might serve to forego the stock in its entirety. It’s all depending on the strength of this effect, to be honest.

In this article, we’ll go through a stock that has recently dropped to a point at which you should do the latter thing: United Airlines (NYSE:UAL).

COVID and Airlines Just Don’t Go Together

In the last couple of months, airlines as a whole had been recovering at decent rates.

For instance, United Airlines was aiming for an earnings-per-share ratio of $2.90 USD in 2022.

However, with the Omicron variant slowly becoming a bigger deal, people have developed second thoughts about their return to air travel. 

Is it safe to travel amidst strangers from all over the world? Should I be in such a small space over such a lengthy amount of time? Is there a way of ensuring that my airline crew is healthy? 

Those are but a few worries that have sprawled amidst customers once again.

Nowadays, United Airlines is expecting its earnings-per-share ratio to hit $1.54 USD. And if that wasn’t enough of a downside, it’s being said that airline recovery has taken some serious steps back. 

In other words, it might take longer for airlines to reach a point where they are attractive to investors once again. 

Sadly, United Airlines seems to be taking the harder end of it.