BOSTON ( TheStreet) -- Analysts are overwhelmingly bullish on the following Dow stocks. Investors looking for blue-chips should consider these names first.3. United Technologies ( UTX) is a defense contractor and maker of elevators, escalators and air conditioners. It also sells helicopters, heating systems and aircraft engines. During the past three years, it has boosted revenue 3% annually, on average. Quarter: Fourth-quarter profit decreased 6.3% to $1.1 billion, or $1.15 a share, as revenue declined 3.7%. The operating margin widened from 12% to 14%. United has $4.5 billion of cash and $9.7 billion of debt, translating to a debt-to-equity ratio of 0.5. Stock: United Technologies has advanced 66% during the past 12 months, outperforming U.S. indices. The stock trades at a price-to-projected-earnings ratio of 14 and a price-to-book ratio of 3.4, reflecting 11% and 48% discounts to the industry averages. Consensus: Of analysts covering United Technologies, 15, or 79%, advise purchasing its shares and four recommend holding them. Macquarie expects the stock to advance 25% to $92. Goldman Sachs ( GS) rates the stock "buy." Catalyst: Barclays ( BCS), which rates United Technologies "overweight", expects the company to benefit from emerging market demand and efforts to expand profit margins. Increased aircraft demand might also increase earnings.
2. Cisco Systems ( CSCO) makes networking and communications equipment. Its products transport data, voice and video around the world. Cisco's quarterly return on equity, a measure of profitability, dropped from 20% to 15% as return on assets fell from 12% to 7.9%.Quarter: Fiscal second-quarter profit increased 23% to $1.9 billion, or 32 cents, as revenue gained 8%. Cisco's operating margin expanded from 20% to 25%. Its balance sheet has $40 billion of cash, equal to a quick ratio of 3.1, and $15 billion of debt. Stock: Cisco has advanced 56% in the past year, outpacing benchmarks. The stock sells for a price-to-projected-earnings ratio of 15 and a PEG ratio, a measure of value based on expected growth, of 0.6. A PEG ratio that's less than 1 suggests cheap shares. Consensus: Of researchers evaluating Cisco, 35, or 83%, rate its stock "buy" and seven rate it "hold." Deutsche Bank ( DB) projects a share price of $32, a potential 21% gain. Credit Suisse ( CS) expects the shares to outperform. Catalyst: Orders are increasing across all of Cisco's product categories. It beat quarterly revenue expectations by a margin of 4.3% and adjusted earnings by a margin of 14%. Upward revisions could generate momentum in the weeks ahead.
1. Bank of America ( BAC) is a diversified financial services company, offering products to individuals, small companies, large corporations and governments. It purchased mortgage lender Countrywide Financial and investment bank Merrill Lynch in 2008.Quarter: Its fourth-quarter loss narrowed 89% to $194 million, but expanded 25% to 60 cents on a per-share basis. Revenue grew 29%. The operating margin widened from 3.2% to 14%. Bank of America has $336 billion of cash and $763 billion of debt. Stock: Bank of America has more than doubled during the past year, beating U.S. indices. The stock trades at a price-to-projected-earnings ratio of 8.6 and a price-to-cash-flow ratio of 1.2, 70% and 65% discounts to the financial industry averages. Consensus: Of firms rating Bank of America, 26, or 81%, advocate purchasing its shares and six say to hold them. Morgan Stanley ( MS) expects the stock to rise 56% to $28. Hedge funds Appaloosa Management and Paulson & Co. hold stakes. Catalyst: Bank of America is the largest U.S. bank by assets and the world's largest wealth manager. Its recently announced principle reduction plan will increase net charge-offs at first, but help it stabilize its earnings in the long term. -- Reported by Jake Lynch in Boston.