|Bid||130.98 x 800|
|Ask||130.98 x 800|
|Day's Range||130.85 - 133.25|
|52 Week Range||100.48 - 144.40|
|Beta (3Y Monthly)||1.34|
|PE Ratio (TTM)||20.34|
|Earnings Date||Jul 23, 2019|
|Forward Dividend & Yield||2.94 (2.21%)|
|1y Target Est||151.44|
United Technologies (UTX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Dow Jones Industrial Average (DJIA) hit an all-time high on Thursday, July 11, doubling down on Friday to end the week at 27,332. The rally came as Fed chief Jerome Powell made statements widely interpreted as supporting further interest rate cuts in the near-term. Regarding the economic situation, he said, “The bottom line is the uncertainties around global growth and trade continue to weigh on the outlook and inflation continues to be muted, and those things are still in place.”With the Fed signaling lower rates ahead, investors naturally moved toward stocks. We’ve looked into TipRanks’ database to find three stocks that are leading the Dow’s gains, to drill down into specifics and find out if they still have room to grow in 2H19. Boeing Company (BA)Seems you can’t keep Boeing out of the news these days. The industrial giant, the world’s largest aerospace firm and the US’ largest manufacturing exporter, has had more than its share of bad headlines in recent months.It started with the crash, back in March, of an Ethiopian Airlines 737 MAX 8 airliner, with the deaths of all on board. It was the second crash of that model aircraft in less than five months, and on close investigation both accidents were attributed to the same flaw in the autopilot software. Airlines and industry regulators around the world reacted by grounding all operating 737 MAX 8 aircraft, globally. The result was both a business and public relations disaster for Boeing, as the company has struggled to reassure the public, build a fix for the software, and cope with a production line shutdown of its best-selling airliner model.But there is also good news. On the macro level, Boeing is one of just two major international manufacturers of commercial airliners, which limits the damage in lost customers. Also, despite some setbacks, Boeing is working on a viable fix for the for the software problem and predicting that the 737 MAX program will return to full production by the end of the year. The company has only had to close one production line. While the MAX 8 is the most popular model of Boeing’s most popular airliner, other 737 models remain in production, and the company’s wide-body airliners were not affected. And finally, with a market cap of $200 billion dollars, Boeing quite simply has the resources to weather this storm.Boeing’s investors can also take heart from the company’s stock performance since the March air crash. In the two trading sessions following the disaster, BA shares fell from $420 to $373, loss of 11%. But that has been the worst of the damage. BA stock has been essentially range-bound since then, with a high point of $393 and a low point of $337. Shares are currently priced at $365 and rising.Wall Street’s top analysts agree that Boeing has a clear path out of its current difficulties. From UBS, Myles Walton points to recent survey evidence that the traveling public is growing more willing to book seats on the 737 MAX. While acknowledging that consumer sentiment can be fickle, Walton sees this as evidence that the public will welcome the popular airliner’s return and justify the company’s continuing production. He gives BA a $500 price target, suggestive of a 36% upside.Vertical Research analyst Robert Stallard agrees that Boeing is a buy and that the 737 MAX will return to full production, although he sees that happening toward the end of the year. In a recent note, in which he gives the stock a $413 price target, Stallard says, “Boeing is having to do additional work on the MCAS software system… We had previously assumed a 6-month grounding in our Boeing estimates, taking the MAX out of action through to the end of 3Q19. We are now updating our numbers to factor in another quarter of grounding to the end of 4Q19…” Stallard’s price target indicates an upside potential of 13%.Finally, Cowen’s Cai Rumohr, an expert on the aerospace sector who has been following Boeing for over 10 years, has consistently maintained his ‘buy’ rating on BA since the March crash. Earlier this spring, Rumohr noted that Boeing had only had four net cancellations in the immediate aftermath of the groundings, evidence of the company’s fundamental strength. He has held steadfastly to his $460 price target on BA, believing that it will break out later this year. That price target suggests an upside of 25% for the stock.Boeing’s strong buy analyst consensus rating reflects the overall optimism and the company’s strong fundamentals. It’s significant to note that even the low-end price target, $367, is higher than the stock’s most recent close at $365. The average price target of $433 suggests that BA has a potential upside of 18%.View BA Price Target & Analyst Ratings Detail United Technologies Corporation (UTX)United Technologies is another large-cap industrial standby, a major manufacturer in a variety of industries: HVAC, building systems, fire and security, elevators and escalators, and aerospace systems such as aircraft engines. UTX’s big news in recent months was the June 9 announcement that it has agreed with Raytheon to merge the two companies’ aerospace and defense segments into a new entity to be called Raytheon Technologies Corporation.Assuming approval of the merger, the new company will be the world’s second largest contractor in the aerospace and defense sector – after Boeing. And this brings us to an interesting point, underlining the different strengths that companies will show in the market. Where Boeing is generally perceived as a strong buy (see above), UTX is still seen as a moderate buy from the analyst consensus. But while the analysts’ optimism about Boeing is conditional on the 737 MAX restarting production in Q4, the outlook on UTX is showing strong improvement. Two five-star analysts have recently upgraded the stock from neutral to buy.The first upgrade, on June 10, came from Josh Sullivan of Seaport Global. Pointing to the Raytheon merger, Sullivan said it, “offers a compelling combination in defense as well as commercial aerospace business.” He specifically points out the proposed new company’s ventures in hypersonic and directed energy weapons as putting it “ahead of the curve” in defense industry trends. He believes the combination is sufficient to support a $165 price target for UTX. Sullivan’s target suggests an upside of 23% to the stock.The second, more recent, upgrade to UTX came on June 24 from Cai Rumohr, quoted above regarding Boeing. Rumohr notes that UTX dropped in the immediate aftermath of the announcement and has only now edged above its June 9 trading level. He says this puts UTX’s aerospace unit “at an inflection point,” with further gains possible if the merger is approved. He adds that, “the stock's relative weakness since the merger was announced suggests investors don't understand the benefits,” and describes UTX, at its current price, as a “win-win for attractive standalone valuation.” Rumohr puts a $150 price target on the stock, indicating room for a 12% upside.As mentioned, the analyst consensus on UTX is a moderate buy. This is based on 6 buys and 3 holds given in the past three months. Shares are selling for $133, and the average price target of $150 suggests an upside potential of 12%.View UTX Price Target & Analyst Ratings Detail Johnson & Johnson (JNJ)With Johnson & Johnson, we shift gears from industry and defense to pharmaceuticals and consumer products. JNJ is best known products like Band-Aids, Tylenol, and no-more-tears baby shampoo, but the company’s main revenue stream comes from is pharmaceutical line. To illustrate the difference in revenues between the segments, consumer/home health supports just under 17% of JNJ’s total revenues, while just two drugs – Remicade and Simponi – bring in over 11% of the total revenues by themselves.Whatever the base, Johnson & Johnson’s healthy revenues and reputation as a defensive stock that will outperform the market in a downturn keep it popular with investors. The company has shown a 24% return on equity over the trailing 12 months, along with positive trends in the 20- and 200-day moving averages. In the last quarterly report, JNJ beat the forecast by 3.3%, and in the coming report, to be released on July 16, is expected to show 15% year-over-year EPS growth.The analysts agree that JNJ is a stock with strong growth potential. Writing at the end of May, BMO’s Joanne Wuensch gave the stock a buy rating with a $157 price target, basing her outlook on an optimistic take regarding an opioid addiction case currently in litigation. Wuensch notes, “Litigation is a common occurrence in the health care sector that takes significant time to resolve, and often headlines are worse than reality.” She adds that Johnson & Johnson has offered a vigorous defense in the case, and adds that, having waived a jury trial in favor of a bench hearing, JNJ could look forward to the case’s completion by summer’s end, making it possible for the company to put the matter behind it fairly quickly. Her price target reflects her optimism, suggesting a 16% upside.Matt Miksic, of Credit Suisse, also weighed in on JNJ, initiating his coverage of the stock with a buy rating. He says the “key drivers” behind the stock are “continued growth in Immunology, driven by Stelera and Tremfya, sustainable growth in Oncology driven by Imbruvica, Darzelex and Erleada, and an attractive pipeline of filings in the 2019-2023 timeframe with greater than$1B potential each, and stable growth and cash flows in Consumer Health.” His price target, $156, like Weunsch’s, also indicates confidence in a 16% upside.Johnson & Johnson’s overall rating is almost identical to UTX’s. JNJ receives a moderate buy from the analyst consensus, based on 7 buys and 4 holds, with a current share price of $134 and an average price target of $150. The upside potential is 12%.View JNJ Price Target & Analyst Ratings DetailUse TipRanks’ database to find out what Wall Street’s top analysts are saying about the market’s leaders, to target your investments appropriately.
Lennox shares have returned 36% since November 2, when Barron’s recommend them. We still like the air-conditioning industry, but everything has its price.
The New England region grabbed 8.9 percent of second quarter deal count and 8.9 percent of second quarter deal value, according to a new report.
Robust budgetary expansions under Trump's leadership, along with other favorable policy reforms have turned out to be the primary catalyst driving the defense industry's latest consolidations.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does United Technologies (UTX) have what it takes? Let's find out.
United Technologies, one of the largest industrial companies in the world, plans to split into three companies and then later merge its aerospace division with Raytheon. That makes valuing the stock especially complex.
The Defense Department wants its large defense contractors investing more in research and development. Higher spending is one reason more mergers could happen.
For many years United Technologies (NYSE:UTX) has been something of a safety stock: a Dow component that's been providing technology products and services to the global aerospace industry, a market that's never out of style in a politically uncertain world. UTX stock has returned 22.5% so far in 2019.Yet, not all is safe and sound in the minds and hearts of United Technologies stock investors, however, as last month's announcement that the company would merge with top defense contractor Raytheon (NYSE:RTN) shook up the industry -- and left shareholders wondering where the UTX stock price might go from here.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Merger MadnessThe newly formed aerospace and defense conglomerate will be a new company called Raytheon Technologies; as the name implies, United Technologies as we know it will essentially disappear. Current holders of UTX stock need not panic, however, as the deal isn't slated to close until the first quarter of 2020.Nonetheless, United Technology stock holders might consider unloading some shares in anticipation of a rough landing, or at least setting a strict stop-loss 10% or even 5% below the current share price. While the two companies have touted the deal as a proverbial merger of equals, not everyone seems entirely comfortable with the formation of an aerospace-and-defense mega-company. Behold, the PushbackAmong the critics of the United Technologies-Raytheon deal is none other than President Trump, who has expressed concern that the merger could reduce competition and make it difficult for the government to negotiate defense contracts. Trump has been known to pillory companies and then forgive them soon afterward, but as a personal preference, I'm not a fan of holding shares of companies that are in the crosshairs of the U.S. government. * The 7 Top Small-Cap Stocks Of 2019 On the flip side is the government's ongoing need for defense-related services, which won't be slowing down anytime soon. Looking over the coming fiscal 2020 U.S. defense budget, we can see that the Senate has already passed a $750 billion defense authorization bill by a vote of 86 to 8. With the U.S. embroiled in a heated conflict with Iran and its allies, the defense bill is likely to pass and government spending in that sector should hold steady or increase in the near term at least. Time to Play DefenseThis might not be enough to assuage concerned investors or prospective investors, though, as there's no shortage of criticism of the merger. One prominent example would be activist investor and Third Point CEO Daniel S. Loeb. Another would be Pershing Square Capital Management Founder and CEO Bill Ackman. They're both prominent UTX shareholders, and neither have been shy about voicing their strong disapproval of the merger.For his part, Loeb has uncategorically stated that Third Point won't support the merger "in its current form and plans to vote against it." Moreover, he's described the proposed combination of United Technologies and Raytheon as "ill-conceived and unlikely to create value for UTC shareholders." * 7 Retail Stocks to Buy That Are Down in 2019 Ackman said that the merger "makes no sense to us" and that his firm "cannot comprehend the strategic logic" of the deal. The reasoning is complex, but to put it in a nutshell, the primary concern of these two hedge-fund managers -- and of concerned investors generally -- is that neither of the two companies will benefit from the proposed agreement in any appreciable way. Bottom Line on United Technologies StockI don't make it a policy to lean bearish on a name like United Technologies stock simply because a couple of famous financiers have expressed their concerns. Besides, given the political unrest happening in the world today, I'm decidedly bullish on the aerospace/defense market as a whole.Still, even if we assume that the proposed merger goes through without a hitch, it won't be the biggest company in its industry; Boeing (NYSE:BA) will still hold that title, at least in terms of annual revenue. Most importantly, I've been searching high and low for a solid rationale to justify this merger -- and as U2 front-man Bono once sang -- I still haven't found what I'm looking for.Therefore, I would steer clear of UTX stock for the time being at least; merger madness, powerful as it may be, need not affect our sanity.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post United Technologies and Merger Mania: Time to Call the Whole Thing Off? appeared first on InvestorPlace.
United Technologies (UTX) closed at $130.39 in the latest trading session, marking a -0.37% move from the prior day.
United Technologies Corp NYSE:UTXView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows but are weakening * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for UTX with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting UTX. Money flowETF/Index ownership | NegativeETF activity is negative and may be weakening. The net inflows of $2.29 billion over the last one-month into ETFs that hold UTX are among the lowest of the last year and appear to be slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. UTX credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.
JPMorgan analyst Stephen Tusa likes United Technologies, Ingersoll-Rand, and Emerson Electric. He’s cooler on Lennox International.
The ProShares S&P 500 Aristocrats ETF (CBOE: NOBL) could get a new addition next year and it very could be International Business Machines Corp. (NYSE: IBM), a member of the Dow Jones Industrial Average. ...
In the latest trading session, United Technologies (UTX) closed at $133, marking a +0.79% move from the previous day.
Global corporate M&A activity dropped 11% to $1.8 trillion in year’s first half versus the same period of 2018, according to a new Mergermarket report.
Raytheon now amounts to a cheap play on United Technologies’ aerospace business if a deal happens and it looks reasonably priced as a stand-alone entity.
Dan Loeb explained his opposition to the United Technologies (UTX) and Raytheon (RTN) merger in a letter to the members of UTX's board on June 28.
United Technologies (UTX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.