United Technologies Corp (UTX): Today's Featured Aerospace/Defense 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 Aerospace/Defense industry higher today making it today's featured aerospace/defense winner. The industry as a whole closed the day up 1.4%. By the end of trading, United Technologies rose $1.37 (1.5%) to $90.57 on average volume. Throughout the day, 3.4 million shares of United Technologies exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $88.41-$90.76 after having opened the day at $89.10 as compared to the previous trading day's close of $89.20. Other companies within the Aerospace/Defense industry that increased today were: Erickson Air-Crane ( EAC), up 6.8%, AerCap Holdings N.V ( AER), up 4.7%, Smith & Wesson Holding Corporation ( SWHC), up 4.4%, and Spirit AeroSystems Holdings ( SPR), up 4.3%.
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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 $81 billion and is part of the industrial goods sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Tuesday. 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, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. 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 aerospace/defense industry could consider iShares DJ US Aerospace & Def Idx ( ITA) while those bearish on the aerospace/defense industry could consider ProShares Short Dow 30 ( DOG).

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