United Technologies (UTX) closed the most recent trading day at $138.17, moving +1.07% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had lost 0.69% over the past month. This has was narrower than the Conglomerates sector's loss of 2.6% and lagged the S&P 500's loss of 0.14% 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 October 22, 2019. The company is expected to report EPS of $2.03, up 5.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.31 billion, up 16.98% from the year-ago period.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $8.03 per share and revenue of $77.06 billion. These results would represent year-over-year changes of +5.52% and +15.88%, respectively.
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. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UTX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UTX currently has a Forward P/E ratio of 17.02. For comparison, its industry has an average Forward P/E of 14.67, which means UTX is trading at a premium to the group.
We can also see that UTX currently has a PEG ratio of 2.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% 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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