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. NEW YORK ( TheStreet) -- United Continental Holdings (NYSE: UAL) has been reiterated by TheStreet Ratings as a hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.47% over the past year, a rise that has exceeded that of the S&P 500 Index. Although UAL had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Airlines industry average. The net income increased by 6.9% when compared to the same quarter one year prior, going from -$448.00 million to -$417.00 million.
- UNITED CONTINENTAL HLDGS INC has improved earnings per share by 7.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED CONTINENTAL HLDGS INC swung to a loss, reporting -$2.32 versus $2.01 in the prior year. This year, the market expects an improvement in earnings ($3.75 versus -$2.32).
- The gross profit margin for UNITED CONTINENTAL HLDGS INC is rather low; currently it is at 16.70%. Regardless of UAL's low profit margin, it has managed to increase from the same period last year.
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