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United Continental Stock Gains 20% in a Year: Here's Why
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Shares of United Continental Holdings ((UAL - Free Report) ) have outperformed its industry in a year’s time. The stock has gained 19.8% against the industry’s 3.9% decline.
Why the Upbeat Price Performance
Solid demand for air travel has led to an uptick in passenger revenues, which account for the bulk of the company's top line. Strong passenger revenues should boost the top line in the second quarter of 2019 as has been the case over the last few quarters. This Zacks Rank #2 (Buy) company's performance with respect to unit revenues is also encouraging. For the second quarter, the company expects passenger unit revenues to grow in the 0.5-2.5% range. Adjusted pre-tax margin for the period is anticipated between 11% and 13%.
Efforts to modernize its fleet also raise optimism in the stock. In this regard, it is imperative to mention that United Continental is replacing outdated planes and adding new ones to its fleet. We also appreciate the company’s efforts to reward its shareholders through buybacks. During 2018, United Continental repurchased shares worth $1.25 billion. Furthermore, the carrier bought back $527 million of its common shares in the January-March period at an average price of $83.68 per share.
United Continental's employee-friendly attitude is an added positive. In 2018, employees earned $334 million in profit sharing. We are also impressed by United Continental's efforts to expand its operations.
Moreover, the stock has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks.
Shares of Air China and SkyWest have rallied more than 18% and 25%, respectively, over the past six months. Meanwhile, Radiant Logistics has an encouraging earnings history, having trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 37.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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United Continental Stock Gains 20% in a Year: Here's Why
Shares of United Continental Holdings ((UAL - Free Report) ) have outperformed its industry in a year’s time. The stock has gained 19.8% against the industry’s 3.9% decline.
Why the Upbeat Price Performance
Solid demand for air travel has led to an uptick in passenger revenues, which account for the bulk of the company's top line. Strong passenger revenues should boost the top line in the second quarter of 2019 as has been the case over the last few quarters. This Zacks Rank #2 (Buy) company's performance with respect to unit revenues is also encouraging. For the second quarter, the company expects passenger unit revenues to grow in the 0.5-2.5% range. Adjusted pre-tax margin for the period is anticipated between 11% and 13%.
Efforts to modernize its fleet also raise optimism in the stock. In this regard, it is imperative to mention that United Continental is replacing outdated planes and adding new ones to its fleet. We also appreciate the company’s efforts to reward its shareholders through buybacks. During 2018, United Continental repurchased shares worth $1.25 billion. Furthermore, the carrier bought back $527 million of its common shares in the January-March period at an average price of $83.68 per share.
United Continental's employee-friendly attitude is an added positive. In 2018, employees earned $334 million in profit sharing. We are also impressed by United Continental's efforts to expand its operations.
Moreover, the stock has a VGM Score of A. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider the likes of Air China Ltd. (AIRYY - Free Report) , SkyWest, Inc. (SKYW - Free Report) and Radiant Logistics (RLGT - Free Report) . While Air China sports a Zacks Rank #1 (Strong Buy), SkyWest and Radiant Logistics carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Air China and SkyWest have rallied more than 18% and 25%, respectively, over the past six months. Meanwhile, Radiant Logistics has an encouraging earnings history, having trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 37.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>