United, Delta Fly High, Lift Industrial Stocks Beyond S&P 500 Gains

Over the past month, industrial stocks have taken off, with the Industrial Select Sector SPDR Fund XLI surging by 6.10%, outpacing the broader S&P 500's 3.72% gain.

The charge was led by aviation giants United Airlines Holdings Inc UAL and Delta Air Lines Inc DAL, two standout performers within the industrial sector.

United Airlines Takes Off

United Airlines soared by 41% in the past month, boosting the XLI ETF.

The airline has been on a winning streak, up 51.78% over the last six months and 81.68% year-to-date. Investors seem to be enjoying the high-altitude ride after United posted better-than-expected third-quarter financial results and announced a $1.5 billion share buyback program.

The airline reported third-quarter revenue of $14.843 billion, surpassing analyst expectations of $14.783 billion, while its adjusted earnings per share came in at $3.33, comfortably beating the $3.13 forecast. These strong results gave United's stock the fuel it needed to skyrocket, further propelling the XLI ETF.

Read Also: Spirit Airlines Struggles To Regain Altitude As Competitors Soar, Bankruptcy Concerns Intensify

Delta Keeps Climbing

Delta Air Lines wasn't far behind, with its stock gaining 18% over the last month and 15% over the past six months. Year-to-date, Delta has seen a 36% increase in its stock price, with an even more remarkable 59% growth over the past year.

Although Delta reported mixed third-quarter results, the airline beat revenue expectations, bringing in $15.677 billion, slightly higher than analysts’ projections of $14.674 billion.

However, Delta's earnings per share were a bit light at $1.50, just shy of the $1.52 consensus, due, in part, to a 9% drop in average fuel prices from the prior year. Despite the mixed bag, Delta's performance continues to make waves, reinforcing its position as a leading stock in the industrials space.

With the aviation sector soaring, XLI has not only kept pace with the broader market but also significantly outperformed it, with both United and Delta driving much of the altitude gain.

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