In the latest trading session, United Technologies (UTX) closed at $133.89, marking a -0.16% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today's trading, shares of the maker of elevators, jet engines and other products had gained 4.76% over the past month. This has outpaced the Conglomerates sector's gain of 1.01% and the S&P 500's gain of 2.25% in that time.
Wall Street will be looking for positivity from UTX as it approaches its next earnings report date. In that report, analysts expect UTX to post earnings of $2.02 per share. This would mark year-over-year growth of 4.66%. Our most recent consensus estimate is calling for quarterly revenue of $19.24 billion, up 16.52% from the year-ago period.
UTX's full-year Zacks Consensus Estimates are calling for earnings of $8.03 per share and revenue of $77.13 billion. These results would represent year-over-year changes of +5.52% and +15.98%, respectively.
Investors might also notice recent changes to analyst estimates for UTX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.17% higher. UTX is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, UTX is currently trading at a Forward P/E ratio of 16.7. Its industry sports an average Forward P/E of 16.82, so we one might conclude that UTX is trading at a discount comparatively.
Investors should also note that UTX has a PEG ratio of 1.9 right now. 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 industry currently had an average PEG ratio of 1.89 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% 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.
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