Why United Continental Is Poised to Dive

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, airline operator United Continental Holdings (NYSE: UAL  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at United Continental and see what CAPS investors are saying about the stock right now.

United Continental facts


Headquarters (founded)

Chicago (1934)

Market Cap

$8.6 billion



Trailing-12-Month Revenue

$37.4 billion


Chairman/CEO Jeffery Smisek
CFO John Rainey

Return on Capital
(average, past 3 years)



$6.7 billion / $12.2 billion


Delta Air Lines (NYSE: DAL  ) Southwest Airlines (NYSE: LUV  ) US Airways Group (NYSE: LCC  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 51% of the 782 members who have rated United Continental believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamathm, succinctly summed up the United Continental bear case for our community:

This is the classic airline stock right now. Heavy [capital expenditures], low profitability, labor union problems that can only be solved by throwing lots of money at workers, etc. I think [United Continental] will continue to disappoint for the next few quarters.

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Brian D. Pacampara, CFA

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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11/25/2015 4:00 PM
DAL $46.87 Down -0.37 -0.78%
Delta Air Lines, I… CAPS Rating: ***
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US Airways Group,… CAPS Rating: *
LUV $45.88 Down -0.35 -0.76%
Southwest Airlines CAPS Rating: ****
UAL $56.22 Down -0.58 -1.02%
United Continental… CAPS Rating: **