United Continental Holdings (UAL) Down In Early Morning Trading

Tickers in this article: UAL

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 pre-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 $189.7 million.
  • UAL traded 20,058 shares today in the pre-market hours as of 8:53 AM.
  • UAL is down 2.9% today from yesterday's close.

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More details on UAL:

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. UAL has a PE ratio of 30.9. Currently there are 7 analysts that rate United Continental Holdings a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for United Continental Holdings has been 5.5 million shares per day over the past 30 days. United Continental has a market cap of $17.6 billion and is part of the services sector and transportation industry. The stock has a beta of 0.26 and a short float of 6.7% with 4.54 days to cover. Shares are up 23.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United Continental Holdings as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

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. This trend suggests that the performance of the business is improving. 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 ($4.49 versus $1.30).
  • UAL's revenue growth trails the industry average of 31.6%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Airlines industry average, but is greater than that of the S&P 500. The net income increased by 122.6% when compared to the same quarter one year prior, rising from -$620.00 million to $140.00 million.
  • Powered by its strong earnings growth of 119.78% and other important driving factors, this stock has surged by 75.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The gross profit margin for UNITED CONTINENTAL HLDGS INC is rather low; currently it is at 22.76%. Regardless of UAL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UAL's net profit margin of 1.50% is significantly lower than the industry average.