United Continental (UAL) Stock Down as Airline Sector Affected by Paris Attacks

United Continental (UAL) stock is retreating as the events in Paris on Friday night weigh on travel and airline stocks today.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of United Continental (UAL) - Get Report are slipping by 1.39% to $57.98 in midday trading on Monday, as Friday's deadly terror attacks in Paris weigh on  airline sector today.

United Continental is a Chicago-based airliner transporting people and cargo across the globe.

European stocks closed mostly in the green on Monday, however the travel sector tanked as a result of Friday's events.

"If there is something which can shake consumer confidence, it is certainly...safety concerns and geopolitical situations," AvaTrade chief market analyst Naeem Aslam said in a note, MarketWatch reports.

The attacks, claimed by the Islamic State, resulted in the deaths of 132 people, including an American college student from California. The attackers carried out assaults in six locations across Paris using suicide bombs and guns.

More than 350 people were injured.

The suspected mastermind behind the attacks has been identified by French officials as Belgian national Abdelhamid Abaaoud, USA Today reports.

Separately, TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate UNITED CONTINENTAL HLDGS INC (UAL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • UNITED CONTINENTAL HLDGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED CONTINENTAL HLDGS INC increased its bottom line by earning $2.79 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($11.98 versus $2.79).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 421.2% when compared to the same quarter one year prior, rising from $924.00 million to $4,816.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Airlines industry and the overall market, UNITED CONTINENTAL HLDGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: UAL

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...