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United Continental: Flying High
01/28/2015 8:00 am EST
Our latest featured breakout stock is part of the strong acting airline sector, which is benefiting from lower oil prices as well as various price increases for flight services, explains Leo Fasciocco, editor of Ticker Tape Digest.
United Continental Holdings (UAL) came public via a reorganization in 2006, trading at $43 a share. During the bear market, the stock fell back to $3.45.
The recent breakout is classic. The stock put down a flat base above its rising 50-day moving average line. The key now will be for a follow through move to the upside.
The stock's momentum indicator has been bullish for the past three months. The accumulation and distribution line recently shot higher, showing good confirmation of strong underlying buying.
Analysts have lifted their estimates slightly. We see good chances for an upside earnings surprise. UAL topped the consensus the past four quarters.
Looking to 2015, analysts project an 82% jump in net to $9.14 a share from the anticipated $5.02 last year.
The stock sells with a price-earnings ratio of just 7, based on projected 2015 net. That makes the stock attractive for value investors. We are targeting a move to $84. A protective stop can be placed at $64.
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