Why United Airlines (UAL) Stock Is Down Today

NEW YORK (TheStreet) -- United Airlines (UAL) was falling -4.3% to $45.73 Wednesday after Lufthansa warned that profits will be lower than previously expected for 2014 and 2015.

Lufthansa expects profit of 1 billion euros for 2014, down from its previous forecast of 1.3 billion to 1.5 billion euros. For 2015 the airline expects profits of 2 billion euros, down from 2.65 billion euros. The lower forecast is due to competition from Middle Eastern airlines and low-cost airlines.

The lower guidance helped pull down the stock of United Airlines and other airlines including Delta Air Lines (DAL), JetBlue Airways (JBLU), and American Airlines (AAL).

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

"We rate UNITED CONTINENTAL HLDGS INC (UAL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."

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