United Continental Holdings (UAL) Rising Before The Market Opens

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 leader 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 $205.4 million.
  • UAL traded 11,200 shares today in the pre-market hours as of 8:37 AM.
  • UAL is up 3.1% today from Friday'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. Currently there are 4 analysts that rate United Continental Holdings a buy, 3 analysts rate it a sell, and 3 rate it a hold.

The average volume for United Continental Holdings has been 5.1 million shares per day over the past 30 days. United Continental has a market cap of $13.2 billion and is part of the services sector and transportation industry. The stock has a beta of 0.26 and a short float of 5.2% with 2.73 days to cover. Shares are up 56.1% year to date as of the close of trading on Friday.

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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 solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:

  • Powered by its strong earnings growth of 4800.00% and other important driving factors, this stock has surged by 82.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 6216.7% when compared to the same quarter one year prior, rising from $6.00 million to $379.00 million.
  • UNITED CONTINENTAL HLDGS INC reported significant earnings per share improvement 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 ($2.04 versus -$2.32).
  • The gross profit margin for UNITED CONTINENTAL HLDGS INC is rather low; currently it is at 24.60%. 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, the net profit margin of 3.70% trails the industry average.
  • Although UAL's debt-to-equity ratio of 6.98 is very high, it is currently less than that of the industry average. To add to this, UAL has a quick ratio of 0.59, this demonstrates the lack of ability of the company to cover short-term liquidity needs.