United Technologies (UTX) closed the most recent trading day at $152.05, moving +0.13% from the previous trading session. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.04%.
Coming into today, shares of the maker of elevators, jet engines and other products had gained 1.64% in the past month. In that same time, the Conglomerates sector gained 5.17%, while the S&P 500 gained 4.38%.
UTX will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2020. On that day, UTX is projected to report earnings of $1.84 per share, which would represent a year-over-year decline of 5.64%. Meanwhile, our latest consensus estimate is calling for revenue of $19.42 billion, up 7.65% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for UTX. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. UTX currently has a Zacks Rank of #4 (Sell).
Digging into valuation, UTX currently has a Forward P/E ratio of 17.43. For comparison, its industry has an average Forward P/E of 16.56, which means UTX is trading at a premium to the group.
Also, we should mention that UTX has a PEG ratio of 1.98. 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 2.02 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.
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