Shares of United Continental Holdings Inc. (UAL) hit a new 52-week high of $63.15 yesterday, ending the trading session a little lower at $61.75. The stock reflects a solid year-to-date return of more than 60%.
Ever since the company announced robust third-quarter 2014 earnings on Oct 23, shares have jumped more than 25%. United Continental Holdings has delivered positive earnings surprises in all of the last four quarters, with an average beat of 6.4%. The company clocked a positive earnings surprise of 1.9% in the third quarter.
United Continental posted adjusted earnings of $2.75 per share, ahead of the Zacks Consensus Estimate of $2.70 in the third quarter.
Despite the strong price appreciation, the stock still has room for plenty of upside, given the positive estimate revisions witnessed over the past two months. In the said period, the Zacks Consensus Estimate increased 11.5% to $5.04 for 2014 and 11.9% to $6.77 for 2015.
Going ahead, the company plans to implement efficient network and fleet management strategies to enhance its revenues. It is also demonstrating excellent cost control efforts. United Continental is successfully expanding on-board products and services on both domestic and international routes to perk up ancillary revenue contributions. In addition, expansion of its global and domestic route network through the introduction of non-stop flights is expected to boost the company’s future performance.
Other Stocks to Consider
United Continental Holdings currently bears a Zacks Rank #2 (Buy). Some other airline stocks that warrant a look are American Airlines Group Inc. (AAL), Spirit Airlines, Inc. (SAVE) and Southwest Airlines Co. (LUV). All these stocks sport a Zacks Rank #1 (Strong Buy).
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