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United Technologies Corporation (NYSE: UTX ) - I last reviewed this large-cap aerospace and industrial giant on Nov. 28. The company manufactures Pratt & Whitney jet engines, Otis elevators and Carrier air conditioners.
Sales are projected to increase 3% in 2017 and 5% in 2018, mostly from improving demand for aerospace products. Currency weakness could cut 1%-2% off of 2017's top line. However, Standard & Poor's expects organic growth to accelerate in 2017-18, due to strong North American growth for aerospace, building and industrial products and services.
United Technologies reported earnings of $6.13 in 2016 and projects $6.56 in 2017 and $7.09 in 2018. Further, they forecast that long-term earnings improvements could be "sizable." Thus on Jan. 25, S&P maintained their "four-star buy" on the shares and increased their price target by $5 to $124.
UTX stock successfully tested its 200-day moving average, now at $106.83, in October and November. In November the stock jumped to a high of $109.42, closely matching the closing high at $109.69 in August. This formed a barrier, which it exceeded in December, resulting in a bull channel within the broad bull channel.
A successful test of the support line for each occurred on Dec. 2 at $106.85 with a CBR Buy from my proprietary indicator. Thus, those who bought UTX at $108 should continue to hold for a revised target of $125. New buyers should consider purchasing UTX at $112 for a potential gain of over 11%.
UTX stock pays a dividend of $2.64 for a dividend yield of 2.3% annually. Investors, too, should consider United Technologies as a purchase for long-term growth in the aerospace and defense industry.
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The post Trade of the Day: United Technologies Corporation (UTX) Stock Is Advancing appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
