United Continental Remains A STRONG BUY For ValuEngine

For today’s bulletin, we take a look at United Continental Airlines $UAL. We also provide a link to download a FREE STOCK REPORT on the company. Because overvaluation has creeped up again, we now have another Valuation Watch.

VALUATION WATCH: Because overvalued stocks now make up 60.43% of our stocks assigned a valuation and 22.83% of those equities are calculated to be overvalued by 20% or more, we have once again re-insitituted a Valuation Watch. Fifteen sectors are calculated to be overvalued.

EDITOR’S NOTE: We will be publishing on an adjusted schedule for the 2017 holidays–T,TH,F, and then resume our regular M,W,F publication schedule beginning January 8, 2018

United Continental Holdings, Inc. (UAL), together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. The company transports people and cargo through its mainline and regional operations. As of December 31, 2016, it operated a fleet of 1,231 aircraft. United Continental Holdings, Inc. also sells fuel; and offers maintenance, catering, and ground handling 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.

Today, we take a look at yet another major airline ranked STRONG BUY. United Continental had some ups and downs this year. Good income from the ever-increasing list of fees and add-ons were a high point. Treating customers like cattle was a low. And those lows reached their nadir with video of police dragging an elderly passenger off the plane despite the fact that he was a paid and ticketed customer.

Despite calls for a boycott after that notorious blunder, the company is simply too large for customer action to have much effect. United Continental is the fourth largest (passenger miles) in the US. In many markets they play a dominant role. When people fly these days, price is key, and few potential customers are willing to pay more money to fly on a more expensive carrier due to recent PR disasters on the part of the cheapest option. Clearly, treating flyers poorly and going viral for it doesn’t impose much–if any–of a long-term penalty.

Of course, short-term events can impact long-term profits for an industry with thin margins. For example, the ongoing “Bomb Cyclone” will clearly impact the bottom line for many carriers as thousands of flights are cancelled, delayed, etc. One might expect that as climate change leads to more and more severe weather, we could see some significant economic impact for transportation-sector industries– such as airlines.

The company will report Q4 2017 earnings on January 23, 2018.

ValuEngine continues its STRONG BUY recommendation on UNITED CONT HLD for 2018-01-03. Based on the information we have gathered and our resulting research, we feel that UNITED CONT HLD has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and P/E Ratio.

You can download a free copy of detailed report on United Continental Holdings, Inc. (UAL) from the link below.

ValuEngine Forecast
1-Month 69.24 1.09%
3-Month 71.76 4.78%
6-Month 72.58 5.97%
1-Year 77.45 13.08%
2-Year 94.61 38.14%
3-Year 110.08 60.73%
Valuation & Rankings
Valuation 28.86% overvalued Valuation Rank(?) 15
1-M Forecast Return 1.09% 1-M Forecast Return Rank 100
12-M Return -5.80% Momentum Rank(?) 19
Sharpe Ratio 0.62 Sharpe Ratio Rank(?) 78
5-Y Avg Annual Return 21.18% 5-Y Avg Annual Rtn Rank 87
Volatility 34.01% Volatility Rank(?) 47
Expected EPS Growth 1.57% EPS Growth Rank(?) 20
Market Cap (billions) 25.28 Size Rank 95
Trailing P/E Ratio 10.74 Trailing P/E Rank(?) 92
Forward P/E Ratio 10.57 Forward P/E Ratio Rank 83
PEG Ratio 6.85 PEG Ratio Rank 5
Price/Sales 0.68 Price/Sales Rank(?) 80
Market/Book 28.43 Market/Book Rank(?) 7
Beta 1.07 Beta Rank 36
Alpha -0.27 Alpha Rank 22



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ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine’s award-winning stock research.
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