United Technologies (UTX) Leading In Pre-Market Activity

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified United Technologies ( UTX) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified United Technologies as such a stock due to the following factors:

  • UTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $401.0 million.
  • UTX traded 15,153 shares today in the pre-market hours as of 9:28 AM.
  • UTX is up 2.2% today from yesterday's close.

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More details on UTX:

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The stock currently has a dividend yield of 2.1%. UTX has a PE ratio of 18.5. Currently there are 14 analysts that rate United Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for United Technologies has been 3.4 million shares per day over the past 30 days. United has a market cap of $105.1 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.13 and a short float of 0.7% with 1.74 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates United Technologies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • UNITED TECHNOLOGIES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED TECHNOLOGIES CORP increased its bottom line by earning $6.22 versus $5.35 in the prior year. This year, the market expects an improvement in earnings ($6.82 versus $6.22).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $2,589.00 million or 31.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.99%.
  • The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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