United Technologies Corporation's (UTX - Free Report) business arm – Pratt & Whitney – has entered into a deal with a popular low-cost Mexican airline company, VivaAerobus.
Per the new pact, Pratt & Whitney’s PurePower Geared Turbofan Engine would be used in VivaAerobus’ aircraft A320neo. A320neo made its first passenger flight on Oct 18, 2016 from Monterrey to Guadalajara, Mexico.
VivaAerobus launched its airbus – A320neo – for serving the interests of its passengers in a more proficient manner. The company believes that Pratt & Whitney’s PurePower Geared Turbofan Engine would boost the efficiency of the aircraft. The engine has a low fuel burn and is 18% superior on the ferry flight. Henceforth, it would be able to offer relatively less expensive airline services to its customers.
Thus, VivaAerobus would strategically reduce its operating expenses by making use of the revolutionary technology of Geared Turbofan Engine in A320neo.
On the other hand, Pratt & Whitney has currently secured more than 8400 Geared Turbofan Engine orders from almost 80 end-users, located across all its business hubs. This product would likely boost United Technologies’ near-term revenues.
Zacks Rank & Stocks to Consider
United Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share price of the company was $107.86 per share as of Nov 14, 2016.
Some better-ranked stocks within the industry include:
Leucadia National Corporation (LUK - Free Report) which currently sports a Zacks Rank #1 and has an average positive earnings surprise of 178.96% for the four trailing quarters.
Danaher Corp. (DHR - Free Report) which currently carries a Zacks Rank #2 (Buy). It delivered an average positive earnings surprise of 6.09% over the last four quarters.
Applied Industrial Technologies, Inc. (AIT - Free Report) which currently carries a Zacks Rank #2 and has an average positive earnings surprise of 4.93% for the trailing four quarters.
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