We recently published a list Top 10 shares to buy according to SRS Investment Management. In this article we will look at where United Airlines Holdings, Inc. (Nasdaq: UAL) stands at other top shares to buy according to SRS Investment Management.
SRS Investment Management was a New York -based investment firm founded in 2006 by Karthik Sarma. The company focuses on various investments in various industries, including technology, media, telecommunications, consumer goods and industrial sectors. It uses a research -driven approach to identify promising opportunities on global markets, using his expertise to navigate complex financial landscapes.
As an investment consultancy firm, SRS offers detailed insights into its business practices through its disclosure abuse, although they are not verified by the SEC or State Support Authorities. The company emphasizes a thorough due diligence in evaluating potential investments, collecting information about the products, services and market position of a company. The analytical approach includes entering into industry experts, assessing demand and demand dynamics and building financial models to project future performance and returns.
SRS is primarily following a worldwide strategy for long/short shares, aimed at a high risk-corrected return and prioritizing the retention of capital. The company diversifies its investments in multiple industries and regions to reduce risks. The investment process includes extensive fundamental research, disciplined portfolio management and strategic positioning in both long and short positions. This approach enables SRS to take advantage of inefficiencies on the market and to generate sustainable returns.
Moreover, the company runs a targeted investment program, focuses on undervalued effects and acquires the acquisition of important positions at favorable prices. This strategy is based on active shareholder involvement, where SRS is looking for positive reactions from business management and stakeholders to influence business actions. The effectiveness of this strategy depends on how the market reacts to these initiatives and the willingness of companies to accept changes proposed by shareholders. Due to its careful investment approach, SRS wants to stimulate long -term value creation for its investors.
Karthik Sarma is an Indian billionaire Hedgefonds manager and the founder of SRS Investment Management, which he launched in 2006 after five years at Tiger Global Management. With a strong background in finance and investments, Sarma has also had director of the Avis board since 2020 and plays a key role in his strategic decisions. His educational background includes a bachelor’s degree from the Indian Institute of Technology Madras and a master’s degree from Princeton University. His professional journey started with three years at McKinsey & Co. As a consultant, where he received experience in business strategy and financial analysis. He later joined Tiger Global Management, where he worked as director from 2001 to 2005, where he shed his expertise in Hedgefondsbeheer before he prepared SRS Investment Management. Sarma’s ability to identify and capitalize investment options has positioned him as a very influential figure in the hedge fund industry.
As an immigrant moving to the United States for graduated studies, Sarma has built up a reputation as a strategic investor at a disciplined approach to finance management. His experience with Consulting, Investment Management and Corporate Governance has contributed to the success of his company. Through SRS he continues to influence the financial landscape, aimed at long -term value creation for investors while maintaining a strong presence in important industries.
From the last application for the fourth quarter of 2024, SRS Investment Management reported to supervise around $ 7 billion in 13F effects. The company’s investment approach remains strongly concentrated, with its top ten holdings accounting for 92.05% of the total assets. This level of concentration suggests a strategy with a lot of conviction, in which SRS invests heavily in a select group of companies that, according to her, offer a strong growth potential in the long term.
The shares discussed below were chosen from the Q4 2024 13F archives of SRS Investment Management. They are composed in the rising order of the importance of the hedge fund in them from December 31, 2024. To help readers with more context, we have included the hedge fund sentiment with regard to each shares with the help of data from 1,009 hedge funds that are followed by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is United Airlines Holdings, Inc. (UAL) The top stock to buy according to SRS Investment Management?
A bird’s eye view of a large commercial jetliner that rises from a runway at the airport.
Number of holders of hedge funds from the first quarter: 86
SRS Investment Management’s Equity Stake: $ 281.70 million
United Airlines Holdings, Inc. (Nasdaq: UAL), with head office in Willis Tower of Chicago, operates United Airlines and continues to demonstrate strong financial performance. In the fourth quarter of 2024, the company surpassed the analyst expectations with profit per share (EPS) of $ 3.26, as a result of which the predicted $ 2.93 surpassed 11.3%. The income also performed better than estimates and reached $ 14.7 billion against the expected $ 14.34 billion. Despite small fluctuations, the financial health of the company remains solid, with considerable efforts for liquidity and debt reduction that positioning for continuous stability.
During 2024, United Airlines Holdings, Inc. (Nasdaq: UAL) on operational improvements and financial strength, in which a profit per share of $ 10.61 was reported that exceeds the center of his guidance range. The airline improved its margin for taxes to 9.7% in Q4, which is a reflection of a 3.5 percentage point rise on an annual basis. In addition, United generated $ 3.4 billion in free cash flow and reduced net leverage to 2.4x while retaining $ 17.4 billion in liquidity at the end of the year. Almost half of his fleet has been upgraded with a new interiors, which strengthens his dedication to improve the passenger experience and to distinguish itself into an increasingly competitive aviation industry.
Looking forward, United Airlines Holdings, Inc. projects (Nasdaq: UAL) EPS growth of approximately 18% at the center for 2025, with estimates ranging from $ 11.50 to $ 13.50. The company is planning to considerably expand its fleet, which means that 71 new narrowbody and 10 widebody aircraft are delivered during the year. In addition, the efforts of the fleet will continue modernization, with 70% of the aircraft interiors that are expected to be upgraded by the end of 2025. These investments give the focus of United on efficiency, customer satisfaction and long -term growth in a rapidly evolving travel landscape.
CEO Scott Kirby emphasized that 2024 served as further proof of the progress of United Airlines Holdings, Inc. (Nasdaq: UAL) to achieve the profit margins with double digits, while CFO Mike Leskinen emphasized the success of the company in “decommodting air travel”. By giving priority to operational improvements, financial discipline and improved customer experience, the company positions itself as a leader in the aviation industry, ready for sustainable growth and profitability in the coming years.
Patient capital management stated the following with regard to United Airlines Holdings, Inc. (Nasdaq: UAL) in the investor letter of Q4 2024:
‘United Airlines Holdings, Inc. (Nasdaq: UAL) had a strong fourth quarter and won 70.2% in the period. The company benefited from the constant strong demand that surprised the market, as well as the initiation of a repayment program, the first since Covid. There is a strong travel question from both retail and business travelers. According to the International Air Transport Association (IATA), the global air passenger journeys are still under the pre-famous implicit trend path despite achieving a new of all time this year. The Focus of United on the customer in recent years has led to a strong improvement of Net Promoter Scores (NPS) that must continue to flow through the model through a better trash (total turnover per available seating mile) and higher cash flows and income. From today, United is only good for ~ 30% of the profit of the total industry. We expect that this market share will grow and be defensible if we switch to an environment where customer service becomes the differentiating factor, and scale offers an unparalleled ability to invest again in the customer experience. “
Generally, ual is in 9th place On our list of top shares to buy according to SRS Investment Management. Although we recognize the potential for UAL as an investment, our conviction is the belief that some AI shares have a greater promise for supplying a higher efficiency within a shorter period of time. If you are looking for an AI share that is promising than UAL, but it acts with less than 5 times the income, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
