United Technologies (UTX - Free Report) closed at $132.69 in the latest trading session, marking a -0.39% move from the prior day. This change was narrower than the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Heading into today, shares of the maker of elevators, jet engines and other products had gained 0.14% over the past month, outpacing the Conglomerates sector's loss of 0.68% and lagging the S&P 500's gain of 0.59% in that time.
Investors will be hoping for strength from UTX as it approaches its next earnings release, which is expected to be October 22, 2019. On that day, UTX is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 4.66%. Our most recent consensus estimate is calling for quarterly revenue of $19.24 billion, up 16.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.03 per share and revenue of $77.13 billion, which would represent changes of +5.52% and +15.98%, respectively, from the prior year.
Any recent changes to analyst estimates for UTX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. UTX is currently a Zacks Rank #2 (Buy).
In terms of valuation, UTX is currently trading at a Forward P/E ratio of 16.58. For comparison, its industry has an average Forward P/E of 13.6, which means UTX is trading at a premium to the group.
It is also worth noting that UTX currently has a PEG ratio of 2.32. 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. Diversified Operations stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.