For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has United Continental Holdings (UAL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
United Continental Holdings is a member of the Transportation sector. This group includes 150 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. UAL is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for UAL's full-year earnings has moved 4.13% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, UAL has gained about 23.40% so far this year. In comparison, Transportation companies have returned an average of -15.99%. This means that United Continental Holdings is outperforming the sector as a whole this year.
Breaking things down more, UAL is a member of the Transportation - Airline industry, which includes 28 individual companies and currently sits at #24 in the Zacks Industry Rank. This group has lost an average of 21.67% so far this year, so UAL is performing better in this area.
Investors in the Transportation sector will want to keep a close eye on UAL as it attempts to continue its solid performance.