In the latest trading session, United Technologies (UTX - Free Report) closed at $125.71, marking a -0.23% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Coming into today, shares of the maker of elevators, jet engines and other products had gained 2.98% in the past month. In that same time, the Conglomerates sector lost 8.03%, while the S&P 500 lost 4.06%.
Wall Street will be looking for positivity from UTX as it approaches its next earnings report date. This is expected to be January 23, 2019. On that day, UTX is projected to report earnings of $1.60 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.52 billion, up 5.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.27 per share and revenue of $64.84 billion. These totals would mark changes of +9.32% and +8.36%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for UTX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. UTX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note UTX's current valuation metrics, including its Forward P/E ratio of 17.3. Its industry sports an average Forward P/E of 17.26, so we one might conclude that UTX is trading at a premium comparatively.
Investors should also note that UTX has a PEG ratio of 1.98 right now. 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 1.84 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.