We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
United Airlines Holdings Inc (UAL) - $25 value - yours FREE >>
American Airlines Group Inc. (AAL) - $25 value - yours FREE >>
Image: Bigstock
United Continental Slips to 52-Week Low on Terror Attacks
Shares of Chicago-based United Continental Holdings (UAL - Free Report) tumbled to a 52-week low of $41.46 on Jun 14. Shares of the carrier, however, recovered marginally to close the trading session at $42.41.
Stock Takes a Beating
Shares of United Continental like its peers including American Airlines Group (AAL - Free Report) suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12.
In the early hours of Jun 12, an individual by the name Omar Mateen opened fire at a nightclub in Orlando, FL, killing 50 people and injuring 53. The indiscriminate act of terror has been described as the worst mass shooting in the history of the U.S. Such acts of terrorism impact airline stocks as there is a possibility of waning travel demand due to security fears. The timing of the attacks could not have been worse as the three-month period between June and August has been predicted to be the busiest one for U.S. carriers in terms of air travel.
Moreover, an explosion at Shanghai's Pudong International Airport injured five people, including the attacker. The explosion highlights the necessity to tighten security at airports.
UNITED CONT HLD Price
UNITED CONT HLD Price | UNITED CONT HLD Quote
PRASM Woes Remain
Apart from the unfortunate incidents, woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue) continue to hurt airline stocks and United Continental is no exception. The carrier expects the metric to drop 6.5% to 8.5% in the second quarter of 2016.
Zacks Rank & Stocks to Consider
United Continental currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include SkyWest, Inc. (SKYW - Free Report) and Air France-KLM SA (AFLYY - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>