United Technologies Corp (UTX): Today's Featured Conglomerates Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

United Technologies ( UTX) pushed the Conglomerates sector higher today making it today's featured conglomerates winner. The sector as a whole closed the day up 1.1%. By the end of trading, United Technologies rose $1.70 (2.2%) to $80.53 on average volume. Throughout the day, 4.6 million shares of United Technologies exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in a price between $78.70-$80.89 after having opened the day at $78.93 as compared to the previous trading day's close of $78.83. Other companies within the Conglomerates sector that increased today were: Dow Chemical ( DOW), up 4.1% and Leucadia National Corporation ( LUK), up 2.9%.
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United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. United Technologies has a market cap of $71.81 billion and is part of the conglomerates industry. The company has a P/E ratio of 13.2, below the average conglomerates industry P/E ratio of 13.8 and below the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate United Technologies a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates United Technologies as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider SPDR Trust Series one ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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