Stock in Focus: United Continental Holdings, Inc. (UAL)

Company Profile:

United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline and regional operations. As of December 31, 2017, the company operated a fleet of 1,262 aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is based in Chicago, Illinois.

Recent News:

United Airlines will hold a conference call to discuss second-quarter 2018 financial results on Wednesday, July 18, at 9:30 a.m. CT/10:30 a.m. ET. For second quarter 2018, the company expects to record a special charge of $105 million ($82 million net of taxes) related to an expected non-cash impairment associated with its Brazil routes.

United Airlines reported first-quarter net income of $147 million, diluted earnings per share of $0.52, pre-tax earnings of $184 million and pre-tax margin of 2.0 percent.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

UAL’s strengths can be seen in its strong growth and better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator. The RSI is strong in the bullish zone and the MACD is trying to cross back up. We rate United Continental Holdings, Inc. (UAL) a STRONG BUY.