In the latest trading session, United Technologies (UTX) closed at $126.89, marking a +1.86% move from the previous day. This change outpaced the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.38%.
Heading into today, shares of the maker of elevators, jet engines and other products had lost 7.93% over the past month, outpacing the Conglomerates sector's loss of 10.2% and lagging the S&P 500's loss of 5.01% 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 $2.01 per share, which would represent year-over-year growth of 4.15%. Meanwhile, our latest consensus estimate is calling for revenue of $19.24 billion, up 16.52% from the prior-year quarter.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $8.03 per share and revenue of $77.13 billion. These results would represent year-over-year changes of +5.52% and +15.98%, respectively.
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. 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 0.11% higher within the past month. UTX currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that UTX has a Forward P/E ratio of 15.52 right now. For comparison, its industry has an average Forward P/E of 15.82, which means UTX is trading at a discount to the group.
Also, we should mention that UTX has a PEG ratio of 1.76. 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. UTX's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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