Shares of diversified business conglomerate United Technologies Corp. ( UTX ) scaled a 52-week high of $113.04 on Dec 27, before closing the trading session a notch lower at $112.80 for a healthy year-to-date return of 37.3%. United Technologies' share prices have been on an uptrend since its third quarter 2013 earnings release.
Despite its strong price appreciation, this Zacks Rank #3 (Hold) stock still has enough fundamentals that may further drive the stock upward. The stock is currently trading at a forward P/E of 18.3x and has a long-term earnings growth expectation of 12.5%.
United Technologies reported third quarter 2013 earnings from continuing operations of $1.55 per share, up from $1.37 in the year-ago quarter. The reported earnings also beat the Zacks Consensus Estimate by a couple of cents. Net income improved 13% from the year-ago quarter to $1.4 billion. Recurring earnings for the quarter surged 19.0% year over year to $1.63 per share.
Total revenue for the last reported quarter rose 3% year over year to $15.5 billion, primarily driven by acquisitions. United Technologies expects revenues in 2013 to aggregate about $63 billion with earnings in the range of $6.10 - $6.15 per share.
With sustained order growth momentum in majority of its markets, the company expects organic growth to continue to accelerate till the end of 2013 and beyond. Furthermore, Pratt & Whitney, one of the operating segments of United Technologies has recently procured three Department of Defense contracts worth $355.1 million. These contracts augur well for the long-term growth of the company.
Moreover, investors' sentiment got a significant boost following the 10% increase in quarterly dividend to 59 cents per share.
Over the last 7 days, the earnings estimates did not show any upward or downward revision for 2013. Although there is a lacuna of estimate revisions, we envision an uptrend for the stock backed by its strong growth potential.CLARCOR INC (CLC): Free Stock Analysis ReportITT CORP (ITT): Free Stock Analysis ReportRAVEN INDS INC (RAVN): Free Stock Analysis ReportUTD TECHS CORP (UTX): Free Stock Analysis ReportTo read this article on Zacks.com click here.
Other Stocks to Consider
Some other players in the industry worth reckoning include CLARCOR Inc. ( CLC ), ITT Corporation ( ITT ) and Raven Industries Inc. ( RAVN ), each carrying a Zacks Rank #2 (Buy).