Tuesday, January 20, 2015

United Continental Holdings (UAL) Stock Advanced Today on Strong Peer Earnings

NEW YORK (TheStreet) -- Shares of United Continental Holdings closed higher by 3.47% to $68.03 in Tuesday's trading session, getting a lift from Delta Air Lines' better than expected fourth quarter earnings results. Delta reported earnings of 78 cents per diluted share for the quarter, edging out analysts' estimates of 77 cents per share. Revenue of $9.65 billion for the period also topped analysts' expectations of $9.58 billion in sales. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Similarly, other airline stocks including American Airlines Group closed up 5.7% to $52.65 today, while Southwest Airlines ended the day higher by 3.32% to $40.79. Delta Air Lines closed up 7.26% to $49.17. Last Friday, United Continental Holdings had its price target boosted by analysts at Barclays to $88 from $76 with an "overweight" rating on the stock. Chicago, IL-based United Continental Holdings transports people and cargo through its mainline operations, which use jet aircraft with at least 110 seats, and its regional operations. Separately, TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate UNITED CONTINENTAL HLDGS INC (UAL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. 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 analysis by TheStreet Ratings Team goes as follows: 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 ($5.12 versus $1.30). 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 143.8% when compared to the same quarter one year prior, rising from $379.00 million to $924.00 million. UAL's revenue growth trails the industry average of 30.9%. 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. When compared to other companies in the Airlines industry and the overall market, UNITED CONTINENTAL HLDGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. Net operating cash flow has significantly increased by 142.19% to $574.00 million when compared to the same quarter last year. In addition, UNITED CONTINENTAL HLDGS INC has also vastly surpassed the industry average cash flow growth rate of -4.36%. You can view the full analysis from the report here: UAL Ratings Report 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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