United Continental Holdings, Inc. [NASDAQ: UAL] shares went higher by 3.96% from its previous closing of $83.79, now trading at the price of $87.11, also adding 3.32 points. Is UAL stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 3.86 million contracts. Compared to the average trading volume of UAL shares, the company saw a far better performance. Moreover, the stock has a 262.19M float and a +5.00% run over in the last seven days. UAL share price has been hovering between $97.85 and $67.94 lately, and is definitely worthy of attention.
United Continental Holdings, Inc. [NASDAQ:UAL]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For United Continental Holdings, Inc. [UAL] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give UAL an Outperform rating. Its stock price has been found in the range of 67.94 to 97.85. This is compared to its latest closing price of $83.79.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for United Continental Holdings, Inc. [UAL] is sitting at 1.95. This is compared to 1 month ago, when its average rating was 2.05.
For the quarter ending in Mar-19 United Continental Holdings, Inc. [UAL] generated $9.59 billion in sales. That’s 0.21% lower than the average estimate of $9.61 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 16 Jul (In 32 Days).
Fundamental Analysis of United Continental Holdings, Inc. [UAL]
Now let’s turn to look at profitability: with a current Operating Margin for United Continental Holdings, Inc. [UAL] sitting at +9.05 and its Gross Margin at +12.92, this company’s Net Margin is now 5.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 15.60, and its Return on Invested Capital has reached 11.60%. Its Return on Equity is 22.65, and its Return on Assets is 4.58. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates UAL financial performance.
Turning to investigate this organization’s capital structure, United Continental Holdings, Inc. [UAL] has generated a Total Debt to Total Equity ratio of 147.35. Similarly, its Total Debt to Total Capital is 59.57, while its Total Debt to Total Assets stands at 30.90. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 133.56, and its Long-Term Debt to Total Capital is 53.99.
What about valuation? This company’s Enterprise Value to EBITDA is 5.47 and its Total Debt to EBITDA Value is 2.46. The Enterprise Value to Sales for this firm is now 0.78, and its Total Debt to Enterprise Value stands at 0.43. United Continental Holdings, Inc. [UAL] has a Price to Book Ratio of 2.26, a Price to Cash Flow Ratio of 3.75 and P/E Ratio of 10.46. These metrics all suggest that United Continental Holdings, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, United Continental Holdings, Inc. [UAL] earns $448,946 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 30.75 and its Total Asset Turnover is 0.89. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.47 and its Current Ratio is 0.54. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
United Continental Holdings, Inc. [UAL] has 267.00M shares outstanding, amounting to a total market cap of $23.26B. Its stock price has been found in the range of 67.94 to 97.85. At its current price, it has moved down by -10.98% from its 52-week high, and it has moved up 28.22% from its 52-week low.
This stock’s Beta value is currently 1.08, which indicates that it is 2.55% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 66.19. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is United Continental Holdings, Inc. [UAL] a Reliable Buy?
United Continental Holdings, Inc. [UAL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.