United Technologies (UTX) Dips More Than Broader Markets: What You Should Know
United Technologies (UTX) closed at $143.74 in the latest trading session, marking a -0.86% move from the prior day. This change lagged the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.55%.
Coming into today, shares of the maker of elevators, jet engines and other products had lost 1.71% in the past month. In that same time, the Conglomerates sector gained 1.98%, while the S&P 500 gained 1.77%.
Wall Street will be looking for positivity from UTX as it approaches its next earnings report date. On that day, UTX is projected to report earnings of $1.84 per share, which would represent a year-over-year decline of 5.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.33 billion, up 7.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.14 per share and revenue of $76.84 billion, which would represent changes of +6.96% and +15.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UTX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UTX is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note UTX's current valuation metrics, including its Forward P/E ratio of 17.82. This represents a premium compared to its industry's average Forward P/E of 17.4.
Meanwhile, UTX's PEG ratio is currently 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Diversified Operations was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UTX in the coming trading sessions, be sure to utilize Zacks.com.
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