United Technologies (UTX) closed at $132.53 in the latest trading session, marking a +0.94% move from the prior day. This change outpaced the S&P 500's 0.62% loss on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.74%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had gained 0.98% over the past month. This has outpaced the Conglomerates sector's gain of 0.26% and lagged the S&P 500's gain of 2.8% in that time.
Wall Street will be looking for positivity from UTX as it approaches its next earnings report date. This is expected to be July 23, 2019. The company is expected to report EPS of $2.04, up 3.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.46 billion, up 16.49% from the year-ago period.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $7.97 per share and revenue of $76.89 billion. These results would represent year-over-year changes of +4.73% and +15.62%, respectively.
It is also important to note the recent changes to analyst estimates for UTX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.01% 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 16.48 right now. Its industry sports an average Forward P/E of 16.58, so we one might conclude that UTX is trading at a discount comparatively.
Also, we should mention that UTX has a PEG ratio of 1.87. 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 1.87 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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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