This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
United Continental (UAL)
by Zacks Equity ResearchOctober 22, 2012 | Comments : 0 Recommended this article: ()
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
Despite the company's aggressive actions to improve profitability, we believe surging fuel prices and the threat of recession in Europe pose downside risks to the stock. Additionally, high non-fuel costs related to fleet optimization and product initiatives, high unionization, new regulations related to advertising, competitive threats and risks pertaining to the successful Continental integration could hurt the company's profitability going forward.
Thus, we have an Underperform rating with the target price of $18, based on 8x our earnings estimate for 2012. The stock is trading at a discount to the peer group as well as the S&P 500 benchmark, based on the forward earnings estimate.