Core Viewpoint - The article emphasizes the importance of identifying undervalued stocks that are mispriced by the market as a strategy for investment in 2026 [1]. Group 1: Company Overview - Stone Fox Capital is an RIA based in Oklahoma, led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2]. - Mark Holder has 30 years of investing experience, including 15 years as a portfolio manager, and leads the investing group Out Fox The Street [2]. Group 2: Investment Strategy - The investing group Out Fox The Street provides stock picks and in-depth research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [2]. - Features of the group include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access for direct interaction with Mark [2].

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1][3] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2][3] - The investment research provided includes strategies for trading options and emphasizes dependable monthly income for investors [3] Group 2 - The service offers a Free Two-Week Trial for potential investors to explore top ideas across exclusive income-focused portfolios [2] - The investment group aims to assist investors in preparing for retirement through various investment vehicles including CEFs, ETFs, BDCs, and REITs [3]

Group 1 - Lotus Creek Exploration (LTC:CA) is a recent Canadian spin-off positioned to capitalize on an economical oil play [1] - Insiders have been actively purchasing stock, indicating confidence in the company's future [1] - The company has reached an inflection point, suggesting a potential shift in its growth trajectory [1] Group 2 - The founder of Korwell Capital emphasizes a value investing approach, focusing on stocks with a tangible margin of safety and significant discounts to long-term earning power [1] - There is a preference for companies with sustainable competitive advantages and management alignment with shareholders [1] - The research highlights the importance of understanding a business model and its position in the industry's capital cycle to identify tail risks [1]

Core Insights - United Airlines has successfully increased its loyalty revenue by focusing on loyalty rather than traditional rewards, achieving a year-over-year increase of 10% in the fourth quarter and 9% for the full year of 2025 [2][3] Loyalty Program Performance - The MileagePlus loyalty program has shown very low member churn, indicating that members tend to stay engaged with the program for a long time [4][5] - The program boasts over 130 million members, with features such as miles that never expire and no blackout dates for award seats [5] Strategic Differentiation - United Airlines aims to distinguish its MileagePlus program from competitors by emphasizing true loyalty over reward systems that often lead to member churn [3][5] - The company believes that its strong product offerings and network, along with desirable rewards like premium seating, contribute to member retention [4] Recent Developments - Recent enhancements to the MileagePlus program include integration with Lyft for earning and using rewards, the introduction of a new debit card product, and a partnership with JetBlue to merge aspects of their loyalty programs [6] Future Growth Plans - The company plans to leverage the unique aspects of its loyalty program to further enhance member engagement and growth in the coming years [7]

Core Viewpoint - United Airlines reported strong fourth-quarter results, exceeding Wall Street expectations in both profit and revenue, driven by robust demand from premium travelers [1][2]. Financial Performance - The company posted diluted earnings per share of $3.19 for the fourth quarter, surpassing the consensus estimate of $2.96 [1]. - Revenue for the quarter reached $15.4 billion, slightly above the forecast of $15.39 billion [1]. - For the full year 2025, diluted earnings per share increased by 8% to $10.20, or $10.62 on an adjusted basis [3]. Future Guidance - United Airlines guided for adjusted earnings per share of $12 to $14 in 2026, with plans to take delivery of over 120 aircraft and expand its route network [2]. - The airline expects to be the only major U.S. airline to grow adjusted earnings per share in 2025 [3]. Passenger and Revenue Metrics - A record 181 million passengers flew with United in 2025 [2]. - Premium revenue increased by 9% in the fourth quarter, while loyalty revenue rose by 10% [2]. - Capacity expanded by 6.5% during the quarter, although total revenue per available seat mile declined by 1.6% year over year [2]. Impact of External Factors - A prolonged U.S. government shutdown that ended in November reduced pre-tax earnings by approximately $250 million during the quarter [3].

Group 1 - The fourth quarter earnings season is gaining momentum, with major financial institutions like Charles Schwab and regional banks such as Fifth Third set to report results, alongside Netflix and Intel, which are expected to be focal points [1][5] - An optimistic consensus is emerging, with 7% of S&P 500 companies having reported fourth quarter results as of January 16, and analysts projecting an 8.2% increase in earnings per share for the quarter, marking the 10th consecutive quarter of annual earnings growth for the index [2] - Analysts had initially anticipated an 8.3% increase in earnings per share heading into the reporting period, a decrease from the previous quarter's 13.6% growth rate, but expectations have been raised recently, particularly for technology companies [3] Group 2 - The current earnings season is expected to test the improved stock market breadth observed at the beginning of 2026, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to influence market dynamics [4] - This week's earnings releases will also include reports from notable companies such as United Airlines, 3M Company, D.R. Horton, Johnson & Johnson, GE Aerospace, Procter & Gamble, Abbott Laboratories, and Capital One [5]

Market Overview - After a sharp sell-off on Tuesday due to fears of potential U.S. tariffs on Europe, Wall Street attempted a cautious rebound on Wednesday [1] - The Dow Jones Industrial Average rose about 0.6%, outperforming both the S&P 500 and the Nasdaq 100, as investors remained defensive amid geopolitical uncertainty [3] Sector Performance - The oil and gas sector significantly outperformed the broader market, with U.S. natural gas futures at the Henry Hub facility jumping nearly 24%, marking the largest two-day percentage gain on record [4] - Shares of EQT Corp climbed 6%, while Antero Resources Corporation advanced 5% due to weather-related concerns [5] - Crude oil prices remained stable, with WTI settling flat at $60 a barrel [5] Earnings Reports - Netflix Inc. fell more than 4% despite beating quarterly estimates, as its first-quarter 2026 guidance disappointed investors [6] - United Airlines Holdings Inc. rose 2% after exceeding expectations [6] - Johnson & Johnson and Charles Schwab Corporation traded flat after largely meeting forecasts, while Truist Financial Corporation gained 2.8% on upbeat guidance [7] Commodity and Crypto Markets - Gold prices extended their record-breaking run, pushing above $4,850 an ounce, climbing more than 10% year to date [7] - Bitcoin fell for a seventh straight session, dropping toward $88,000, marking its worst losing streak since May 2023 [8] Major Indices Performance - The Dow Jones closed at 48,777.55, up 0.6% [9] - The S&P 500 closed at 6,831.24, up 0.5% [9] - The Nasdaq 100 closed at 25,091.90, up 0.4% [9] Top Gainers and Losers - Lucid Group, Inc. was the top gainer, rising 14.51% [11] - Moderna, Inc. and Intel Corporation also saw significant gains of 11.18% and 8.66% respectively [11] - AST SpaceMobile, Inc. was the top loser, falling 11.42% [12]

Core Insights - United Airlines Holdings, Inc. (UAL) reported strong fourth-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate [1][10] Financial Performance - UAL's adjusted earnings per share (EPS) for Q4 2025 was $3.10, surpassing the Zacks Consensus Estimate of $2.98, but down 4.9% year-over-year [1][10] - Operating revenues reached $15.4 billion, slightly above the Zacks Consensus Estimate by 0.1% and up 4.8% year-over-year [2] - Passenger revenues, which constituted 90.4% of total revenues, increased by 4.9% year-over-year to $13.9 billion [2] - Cargo revenues decreased by 6% year-over-year to $490 million, while revenues from other sources rose by 9.1% year-over-year to $981 million [2] Operational Metrics - UAL transported 45,679 passengers in Q4, marking a 3% increase year-over-year [2] - Airline traffic, measured in revenue passenger miles, grew by 5.9%, while capacity, measured in available seat miles, expanded by 6.5% [5] - The consolidated load factor declined by 0.4 points year-over-year to 81.9% due to capacity growth outpacing traffic improvement [5] Revenue and Cost Analysis - Consolidated passenger revenue per available seat mile decreased by 1.4% year-over-year, and total revenue per available seat mile fell by 1.6% [6] - The average yield per revenue passenger mile dropped by 0.9% year-over-year to 20.41 cents [6] - Operating expenses increased by 6.2% year-over-year to $14 billion, while consolidated unit cost per available seat mile (excluding certain expenses) rose by 0.4% to 12.94 cents [7] Cash Position and Share Repurchase - UAL ended Q4 with cash and cash equivalents of $5.94 billion, down from $6.73 billion at the end of the previous quarter [8] - Long-term debt and financial liabilities were reported at $20.5 billion, slightly down from $20.8 billion in the prior quarter [8] - The company repurchased $29 million of its shares during Q4 2025 [8] Future Outlook - For Q1 2026, UAL anticipates adjusted EPS between $1.00 and $1.50, with the Zacks Consensus Estimate at $1.07 [11] - For the full year 2026, UAL expects adjusted EPS between $12.00 and $14.00, with the Zacks Consensus Estimate at $13.21 [11] - Adjusted total capital expenditures for 2026 are projected to be less than $8 billion [11]

Core Insights - United Airlines reported a 4.8% increase in fourth-quarter revenue to $15.4 billion, driven by a 6.5% rise in capacity year-over-year, despite a 1.6% decline in consolidated RASM [1] - The company achieved full-year earnings per share (EPS) of $10.62, slightly up from 2024, and is expected to be the only U.S. airline to grow EPS year-over-year in 2025 [2] - United's CEO emphasized 2025 as a validation of the airline's strategy to build a revenue-diverse and brand-loyal airline, highlighting its resilience in challenging times [3] Financial Performance - Fourth-quarter EPS was reported at $3.10, aligning with the company's guidance range of $3.00 to $3.50, despite a $250 million pre-tax impact from a U.S. government shutdown [3][7] - The airline forecasts higher profitability in 2026, with full-year EPS projected between $12 and $14, indicating over 20% growth at the midpoint [6][16] Operational Highlights - United Airlines recorded a record 189 million passengers in 2025 and led the industry in on-time departures and arrivals during the holiday period, with less than 1% of flights canceled [10][11] - The airline's premium cabin revenue increased by approximately 12% in Q4, while loyalty revenue grew by 9% [5][14] Customer Experience and Technology - The airline saw an almost three-point increase in its Net Promoter Score (NPS) for 2025, with significant improvements in customer experience through new app features [8] - More than 85% of customers utilized the United app on the day of travel, reflecting strong app adoption [8] Market Dynamics - Management noted strong premium demand but indicated weakness in standard main cabin demand, with expectations for eventual improvement [12] - International demand improved in Q4, particularly in the Pacific and Atlantic regions, while Latin America faced challenges [13] Strategic Initiatives - United plans to enhance its commercial priorities for 2026, including seasonal shaping of long-haul capacity and a significant redesign of its website [15] - The airline is targeting net leverage below 2.0x to achieve investment-grade status by year-end 2026, with plans for over 100 aircraft deliveries [17][18] Competitive Positioning - United's brand-loyal strategy has insulated it from competitive pressures, with a reported $500 million profit from its Chicago hub in 2025 [19]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...