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 0.5%. By the end of trading, United Continental Holdings fell $0.46 (-1.3%) to $34.29 on light volume. Throughout the day, 2,713,396 shares of United Continental Holdings exchanged hands as compared to its average daily volume of 4,547,600 shares. The stock ranged in price between $34.22-$35.27 after having opened the day at $34.87 as compared to the previous trading day's close of $34.75. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 13.8%, Alaska Air Group ( ALK), down 8.4%, Sino-Global Shipping America ( SINO), down 5.4% and Newlead Holdings ( NEWL), down 5.3%.
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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 $11.5 billion and is part of the services sector. Shares are up 48.6% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate United Continental Holdings a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates United Continental Holdings as a hold. 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 also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.

On the positive front, YRC Worldwide ( YRCW), down 15.0%, Genco Shipping & Trading ( GNK), down 11.8%, Globus Maritime ( GLBS), down 8.7% and Eagle Bulk Shipping ( EGLE), down 7.8% , were all gainers within the transportation industry with FedEx Corporation ( FDX) 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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