United has struggled to please customers in recent quarters. Credit: Benjamin Beyers for The Motley Fool.

Despite its apparently cheap stock price, investors should avoid United Continental Holdings. (NYSE:UAL). Fool contributor Tim Beyers explains why in the following video.

Customer satisfaction -- or lack thereof -- seems to be the principal issue. Last month's American Customer Satisfaction Index ranked United last among six major airlines. Earlier this week,  J.D. Power & Associates placed the carrier fifth of six big names for customer satisfaction. In each case, peers Delta Air LInes (NYSE:DAL) and American Airlines Group (NASDAQ:AAL) easily outscored United.

Meanwhile, United's recent business performance suggests that a portion of unsatisfied fliers are seeking better seats elsewhere. The carrier last month reported nearly $500 million in losses in the first quarter. Delta and American each reported hundreds of millions in profits over the same period.

Analysts see a recovery on the way, but Tim says that's still no reason to buy. Why? Consider the math. Wall Street's expectation for 35% annualized earnings growth over the next five years results in a seemingly cheap 0.29 PEG ratio. The trouble is, the sector averages a 0.28 PEG. United is trading at just the sort of mediocre valuation you'd expect from a mediocre airline.

Now it's your turn to weigh in. Are you still flying United? Why or why not? Please watch the video to get the full story and then leave a comment to let us know your take, including whether you would buy, sell, or short United Continental Holdings stock at current prices.

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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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