Strong Upward Pre-Market Activity For United Technologies (UTX)

Trade-Ideas LLC identified United Technologies (UTX) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

United Technologies

(

UTX

) as a pre-market leader 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 $345.8 million.
  • UTX traded 18,540 shares today in the pre-market hours as of 8:22 AM.
  • UTX is up 2.2% today from Friday's close.

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More details on UTX:

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. The stock currently has a dividend yield of 2.5%. UTX has a PE ratio of 24. Currently there are 6 analysts that rate United Technologies a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for United Technologies has been 3.9 million shares per day over the past 30 days. United has a market cap of $88.6 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.07 and a short float of 1.7% with 2.56 days to cover. Shares are up 9.4% year-to-date as of the close of trading on Friday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.81, 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 0.88 is somewhat weak and could be cause for future problems.
  • UNITED TECHNOLOGIES CORP's earnings per share declined by 6.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, UNITED TECHNOLOGIES CORP reported lower earnings of $4.46 versus $6.65 in the prior year. This year, the market expects an improvement in earnings ($6.55 versus $4.46).
  • After a year of stock price fluctuations, the net result is that UTX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Aerospace & Defense industry and the overall market on the basis of return on equity, UNITED TECHNOLOGIES CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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