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

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 lower today making it today's featured Conglomerates laggard. The sector as a whole closed the day down 1.1%. By the end of trading, United Technologies fell $1.26 (-1.5%) to $80.81 on light volume. Throughout the day, 2.2 million shares of United Technologies exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $80.68-$81.82 after having opened the day at $81.52 as compared to the previous trading day's close of $82.07. Another company within the Conglomerates sector that decreased today was MGT Capital Investments ( MGT), down 6.5%.
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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 $75.26 billion and is part of the conglomerates industry. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Thursday. Currently there are 15 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 revenue growth, increase in net income, increase in stock price during the past year and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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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