United Technologies (UTX) closed the most recent trading day at $119.44, moving -1.66% from the previous trading session. This change was narrower than the S&P 500's 2.33% loss on the day. Meanwhile, the Dow lost 2.24%, and the Nasdaq, a tech-heavy index, lost 3.05%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had lost 7.53% over the past month. This has lagged the Conglomerates sector's loss of 4.19% and the S&P 500's loss of 1.93% in that time.
Investors will be hoping for strength from UTX as it approaches its next earnings release, which is expected to be January 23, 2019. In that report, analysts expect UTX to post earnings of $1.53 per share. This would mark a year-over-year decline of 4.38%. Our most recent consensus estimate is calling for quarterly revenue of $16.65 billion, up 6.22% from the year-ago period.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $7.20 per share and revenue of $65.05 billion. These results would represent year-over-year changes of +8.27% and +8.72%, respectively.
It is also important to note the recent changes to analyst estimates for UTX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.28% lower. UTX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, UTX currently has a Forward P/E ratio of 16.88. This represents a premium compared to its industry's average Forward P/E of 16.36.
Also, we should mention that UTX has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 106, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.