Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Jan 25, we reaffirmed our Neutral recommendation on United Technologies Corporation (UTX - Analyst Report). The integration of transformational deals and solid execution drove 16% earnings growth in the reported quarter despite a slower-than-expected recovery in end markets. United Technologies has a diversified business mix and wide geographical presence to mitigate operating risks. The company also has a strong balance sheet with adequate liquidity to fuel its growth engine. However, the company’s long-cycle business patterns could affect its profitability to some extent and force us to remain on the sidelines.
    
Why Reiterated  
 

United Technologies is a diversified business conglomerate serving various end-markets such as aerospace, defense and commercial construction, which move according to their own cycles. This business mix and diversification allows the company to remain profitable even during tough economic times, delivering consistent earnings and dividend growth

The company has an experienced management team that is likely to capitalize on the continued global economic recovery and deliver sustainable earnings growth in 2014. Additionally, the accelerated organic sales growth and continued strength in orders are growth catalysts in 2014.

The company continues to invest in innovative new products delivering value to its customers and securing orders that will drive top-line growth in future.
    
However, the financial performance of the company depends on the conditions of the construction and aerospace industries. United Technologies is also highly dependent on the U.S. government’s budgetary allocation for defense. A reduction in capital spending for the commercial aviation or defense industries could have a significant effect on demand for its products, which could in turn have an adverse impact on its financial performance.

Over the last 7 days, the Zacks Consensus Estimate for 2014 earnings per share has decreased by a penny to $6.81.  For 2015, it increased by two cents to $7.58 per share during the same period.

Other Stocks to Consider

United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include Hutchison Whampoa Ltd. (HUWHY), Carlisle Companies Inc. (CSL - Snapshot Report) and Crane Co (CR - Snapshot Report), each having a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%