United Technologies closed the most recent trading day at $82.53, moving -1.47% from the previous trading session. This move was narrower than the S&P 500's daily loss of 4.34%. At the same time, the Dow lost 4.55%, and the tech-heavy Nasdaq lost 3.79%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had lost 44.12% over the past month. This has lagged the Conglomerates sector's loss of 34% and the S&P 500's loss of 28.78% in that time.
UTX will be looking to display strength as it nears its next earnings release. On that day, UTX is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 13.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.25 billion, down 0.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8 per share and revenue of $76.37 billion, which would represent changes of -3.15% and -0.88%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for UTX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.86% lower within the past month. UTX is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, UTX is currently trading at a Forward P/E ratio of 10.48. This represents a premium compared to its industry's average Forward P/E of 10.44.
We can also see that UTX currently has a PEG ratio of 1.29. 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 1.52 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 187, which puts it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.