United Technologies (UTX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, United Technologies (UTX) closed at $119.25, marking a -0.34% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 0.39%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had lost 7.16% over the past month. This has lagged the Conglomerates sector's loss of 4.65% and the S&P 500's loss of 2.56% in that time.
UTX will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. On that day, UTX is projected to report earnings of $1.53 per share, which would represent a year-over-year decline of 4.38%. Our most recent consensus estimate is calling for quarterly revenue of $16.65 billion, up 6.22% from the year-ago period.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $7.20 per share and revenue of $65.05 billion. These results would represent year-over-year changes of +8.27% and +8.72%, respectively.
Investors should also note any recent changes to analyst estimates for UTX. Recent revisions tend to reflect the latest near-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.
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. Within the past 30 days, our consensus EPS projection has moved 1.28% lower. UTX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that UTX has a Forward P/E ratio of 16.63 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.82.
Meanwhile, UTX's PEG ratio is currently 1.81. 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. UTX's industry had an average PEG ratio of 1.81 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 103, putting it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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