Today’s quick video takes a closer look at United Continental Holdings (UAL) stock ahead of its earnings report. This company operates one of the best known airline brands in the world, United, and is a global player in the industry. However, it will take more than brand name recognition to make up for a sluggish overall environment for the sector.
Overall, the industry rank for airlines is in the bottom 20% overall, while higher oil prices could eat into profits as well. Increased competition could be a factor as well, so airlines will need to be disciplined in this environment.
Fortunately for United, the company does have a pretty strong track record in earnings season, even if growth numbers aren’t that great. Additionally, the Earnings ESP is positive, which suggests a beat given that UAL has a Zacks Rank #3 (Hold), while the stock has a great fundamental picture.
We should note that growth is likely to be a concern for investors, at least those focused on the long term. UAL is projected to see 2017 earnings fall below its 2016 output, so this could weigh on investors following the release, making this an overall mixed bag for United Continental investors this earnings season.
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UNITED CONT HLD (UAL): Free Stock Analysis Report
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