12-Month Net Income Growth: 8.9%
Quarterly Operating Profit Margin: 16%
Cash Flow Multiple: 13 (11% peer premium)
Analysts' Median Target: $85.86
3-Year Dividend Growth: 13%
Dividend Yield: 2.2%
Payout Ratio: 38%
2011 Catalyst: United Technologies' shares jumped Thursday as management boosted its 2011 earnings guidance. It now expects 7% to 14% net profit growth and 3% to 5% organic revenue growth. Industrial companies are the best-performing investments at this stage in the growth cycle. Also, bullish analysts are telling investors that management's assumptions are typically too conservative at the Hartford, Conn.-based company. United's forward earnings multiple of 15 and book value multiple of 3.4 reflect 16% and 18% discounts to peer averages. The company has completed five acquisitions in 2010. One is still pending. It has $5.7 billion of cash on hand. Bullish Scenario: Jefferies believes that United Technologies will climb 15% to $90. Bearish Scenario: Goldman Sachs expects the stock to appreciate 6% to $83.