Why United Continental (UAL) Stock Is Climbing Today

United Continental (UAL) stock is gaining on Wednesday afternoon after the air carrier posted earnings and revenue that beat analysts’ projections for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of United Continental (UAL) - Get Report are rising 2.07% to $48.84 in midday trading Wednesday after the airline reported better-than-expected results for the 2016 second quarter.

After yesterday's market close, the Chicago-based holding company posted earnings of $2.61 per share, above analysts' estimates of $2.57 per share.

Revenue for the quarter was $9.4 billion, slightly higher than analysts' estimates of $9.38 billion.

Deutsche Bank maintained its "buy" rating and $59 price target on the stock following the results. The results were driven by a combination of greater revenue and lower costs, according to the firm.

Additionally, the company's board approved a new $2 billion share repurchase program.

United also said it would reduce its service to the U.K. from Washington Dulles Int'l Airport and Newark in its winder schedule.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: UAL

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