United Technologies (UTX) Falls Further As It's Water-Logged And Getting Wetter
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified United Technologies (UTX) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified United Technologies as such a stock due to the following factors:
- UTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $317.1 million.
- UTX has traded 2.1 million shares today.
- UTX traded in a range 220.9% of the normal price range with a price range of $3.10.
- UTX traded below its daily resistance level (quality: 22 days, meaning that the stock is crossing a resistance level set by the last 22 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.EXCLUSIVE OFFER: Get the inside scoop on opportunities in UTX with the Ticky from Trade-Ideas. See the FREE profile for UTX NOW at Trade-IdeasMore details on UTX: United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The stock currently has a dividend yield of 2%. UTX has a PE ratio of 19.0. Currently there are 14 analysts that rate United Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for United Technologies has been 3.4 million shares per day over the past 30 days. United has a market cap of $107.8 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.13 and a short float of 0.7% with 2.11 days to cover. Shares are up 4% year-to-date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates United Technologies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- Powered by its strong earnings growth of 51.92% and other important driving factors, this stock has surged by 29.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UTX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- UNITED TECHNOLOGIES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED TECHNOLOGIES CORP increased its bottom line by earning $6.22 versus $5.35 in the prior year. This year, the market expects an improvement in earnings ($6.82 versus $6.22).
- Despite its growing revenue, the company underperformed as compared with the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $2,589.00 million or 31.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.16%.
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
- You can view the full United Technologies Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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