Summary
- As oil prices remain weak, transports have benefited.
- In a low energy price environment, high value transportation companies are especially compelling.
- United Continental has strong fundamentals and low debt, making it a great long term investment.
Since oil prices have fallen by about 50% since the middle of last year, many companies now are in a great position to benefit with lower input costs. Among those positively affected by the development are transportation stocks.
Because of this drastic change, now is a great time to find value plays in the transportation industry. One of the best value candidates is United Continental Holdings Inc. (NYSE:UAL). With strong fundamentals, low debt, and rising income, UAL is poised to provide strong future returns to its shareholders.
