Citigroup Inc (C), United Continental Holdings Inc (UAL): The Top Two Stocks in David Tepper’s Portfolio

An airline is narrowing the losses

United Continental Holdings Inc (NYSE:UAL), the owner of United Air Lines and Continental Airlines, is one of the biggest global airline companies, operating in four main geographical segments. Most of its revenue, $21.3 billion, or 57.3% of total 2012 revenue, was generated from the Domestic (U.S. and Canada) segment, while the Pacific and Atlantic segment contributed $6 billion and $6.58 billion, respectively, in total revenue.

In the first quarter of 2013, although United Continental Holdings Inc (NYSE:UAL) grew its revenue 1.4% to $8.72 billion, it still incurred an operating loss of $264 million. However, compared to the first quarter last year, the operating loss was narrowed down by 2.6% from a loss of $271 million. In the first quarter of 2013, its net loss came in at $417 million, or $1.26 per share. At around $34.30 per share, United Continental is worth $11.45 billion on the market. The market values the airline at 6.64 times EV/EBITDA.

My Foolish take

Among the three companies, I like both Citigroup Inc (NYSE:C) and Bank of America due to their global leading positions. Their earnings would probably rise in the near future, partly due to the release of their loan loss reserves. Citigroup and Bank of America, trading at less than their book values, are certainly good long-term investment opportunities.

The article The Top 2 Stocks in David Tepper’s Portfolio originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America and Citigroup Inc . Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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