United Technologies Corporation (UTX) provides a broad range of high technology products and services to the building systems and aerospace industries. Those products include Pratt & Whitney aircraft engines, space propulsion systems and industrial gas turbines; Carrier heating, air conditioning and refrigeration; Otis elevator, escalator and people movers; Hamilton Sundstrand aerospace and industrial products; Sikorsky helicopters and International Fuel Cells power systems.
Stocks are up big today– following yesterday’s losses –on the strength of earnings reported by some major companies. For today’s bulletin, we provide VE data on United Technologies (UTX,$UTX). The firm is slated to report earnings tomorrow morning before the open. Analysts expect earnings of $5.43/share. Key for United Technologies is the state of the big ticket aircraft industry as the firm’s Pratt and Whitney engine and Sikorsky helicopter businesses are major players in aerospace and defense. In addition, UTX results depend on its Carrier HVAC business which should provide insights into the US housing market and the overall economy as well as construction overseas.
ValuEngine has issued a BUY recommendation for UTD TECHS CORP on Jul. 19, 2011. Based on the information we have gathered and our resulting research, we feel that UTD TECHS CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and risk.
Based on available data as of Jul. 19, 2011, we believe that UTX should be trading at $79.7. This makes UTX 9.93% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For UTX, we base this on actual earnings per share (EPS) for the previous four quarters of $5.26, forecasted EPS for the next four quarters of $5.79, and correlations to the 30- year Treasury bond yield of 4.29%.
Technically speaking, our Chief Market Strategist Richard Suttmeier had this to say about United Technologies, “UTX shows declining momentum on its daily chart with an all time high of $91.83 set on July 7th. My semiannual value level is $74.43 with semiannual and weekly pivots at $86.85 and $88.45, and monthly risky level at $94.13.”
ValuEngine.com (VE) is a stock valuation and forecasting service founded by Ivy League finance academics. VE utilizes the most advanced quantitative techniques and analysis available. Our research team continues to develop, test, and improve the VE Stock Valuation Models and econometric models for forecasting stock price movement. In recent years, VE has expanded its research program to include portfolio construction and tracking products. Our primary products are this website for individual investors and ValuEngine Institutional (VEI), a software package for equity fund managers and other financial professionals. Until recently, access to the VE Institutional stock valuation, risk management, and forecasting technology was only available to financial professionals in the United States. Now, the individual investor planning for their own financial future and managing their own portfolio can utilize the same types of tools that are used by financial professionals managing billions of dollars in assets every business day.
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