United Continental Holdings, Inc. (UAL): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Wednesday, April 17, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
United Continental Holdings Inc UAL Airlines 7.2 +25.18% $28.40

Why We Like The Stock:

United Continental Holdings Inc (UAL) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) in one of 2013's top-performing sub-industries, Airlines. Along with Delta Airlines (DAL), US Airways (LCC), and Southwest (LUV), UAL has already gained quite a bit this year, yet still maintains a positive technical set-up and an intermediate-term uptrend. The stock has pulled back in early April from recent February highs just north of $32. UAL never dipped below its 50-day moving average, and has since turned around and is headed right back up. Yesterday the stock crossed above its short-term moving averages, and is holding up relatively well despite today's massive selloff. We like Airlines here, and UAL is one of the prettier charts.
We Would Be Buyers:

At the current price (~$163.00).

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Company Profile:

United Continental Holdings, Inc. (UAL) is a holding company and its principal, wholly owned subsidiaries are United Air Lines, Inc. (United) and Continental Airlines, Inc. (Continental). The Company transports people and cargo through its mainline operations, which utilize jet aircraft with at least 110 seats, and its regional operations. The Company has contractual relationships with various regional carriers to provide regional jet and turboprop service branded as United Express, Continental Express and Continental Connection. The majority of the Company’s airline seat inventory continues to be distributed through the traditional channels of travel agencies and global distribution systems (GDS). As of December 31, 2011, UAL, through United and Continental and their regional carriers, operates more than 5,600 flights a day to more than 370 United States domestic and international destinations.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  United Continental Holdings Inc - Last 3 Months

  United Continental Holdings Inc - Last 12 Months

  United Continental Holdings Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Business , Stocks

Referenced Stocks: DAL , LCC , LUV , UAL

David Moenning


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