Trade-Ideas LLC identified

United Technologies

(

UTX

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified United Technologies as such a stock due to the following factors:

  • UTX has 19x the normal benchmarked social activity for this time of the day compared to its average of 3.13 mentions/day.
  • UTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $692.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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 3%. UTX has a PE ratio of 13. Currently there are 7 analysts that rate United Technologies a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for United Technologies has been 5.6 million shares per day over the past 30 days. United has a market cap of $75.3 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.16 and a short float of 5.5% with 5.55 days to cover. Shares are down 10.8% year-to-date as of the close of trading on Tuesday.

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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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that UTX's debt-to-equity ratio is low, the quick ratio, which is currently 0.68, displays a potential problem in covering short-term cash needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • UTX, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • UNITED TECHNOLOGIES CORP's earnings per share declined by 16.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, UNITED TECHNOLOGIES CORP increased its bottom line by earning $6.86 versus $6.22 in the prior year. For the next year, the market is expecting a contraction of 8.6% in earnings ($6.27 versus $6.86).

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