Trade-Ideas: United Continental Holdings (UAL) Is Today's Post-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified United Continental Holdings ( UAL) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified United Continental Holdings as such a stock due to the following factors:

  • UAL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $202.2 million.
  • UAL is down 2.3% today from today's close.

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More details on UAL:

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo transportation services. The company transports people and cargo through its mainline operations, which use jet aircraft with 118 seats, and its regional operations. UAL has a PE ratio of 25.6. Currently there are 10 analysts that rate United Continental Holdings a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for United Continental Holdings has been 5.9 million shares per day over the past 30 days. United Continental has a market cap of $17.7 billion and is part of the services sector and transportation industry. Shares are up 23.6% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United Continental Holdings as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • UNITED CONTINENTAL HLDGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, UNITED CONTINENTAL HLDGS INC turned its bottom line around by earning $1.30 versus -$2.32 in the prior year. This year, the market expects an improvement in earnings ($4.60 versus $1.30).
  • The revenue growth significantly trails the industry average of 45.5%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Airlines industry and the overall market on the basis of return on equity, UNITED CONTINENTAL HLDGS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Powered by its strong earnings growth of 66.11% and other important driving factors, this stock has surged by 37.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has increased to $1,464.00 million or 27.52% when compared to the same quarter last year. Despite an increase in cash flow, UNITED CONTINENTAL HLDGS INC's cash flow growth rate is still lower than the industry average growth rate of 72.42%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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