United Continental Holdings Inc (UAL): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

United Continental Holdings ( UAL) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day up 0.8%. By the end of trading, United Continental Holdings fell 74 cents (-2.4%) to $30.61 on average volume. Throughout the day, 5.5 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 4.9 million shares. The stock ranged in price between $30.35-$31.08 after having opened the day at $30.93 as compared to the previous trading day's close of $31.35. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 9.7%, Diana Containerships ( DCIX), down 5.4%, China Southern Airlines Company ( ZNH), down 4.3%, and China Eastern Airlines Corporation ( CEA), down 3.5%.
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United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo air transportation services. The company operates in six continents from its hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York/Newark, San Francisco, Tokyo, and Washington, D.C. United Continental Holdings has a market cap of $9.85 billion and is part of the services sector. Shares are up 10.2% year to date as of the close of trading on Friday. Currently there are seven analysts that rate United Continental Holdings a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates United Continental Holdings as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share.

On the positive front, Paragon Shipping ( PRGN), up 17.6%, YRC Worldwide ( YRCW), up 12.5%, Global Ship Lease ( GSL), up 11.9%, and Excel Maritime Carriers ( EXM), up 9.8%, were all gainers within the transportation industry with CSX ( CSX) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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