United Tech (UTX) Offering Possible 14.42% Return Over the Next 9 Calendar Days

United Tech's most recent trend suggests a bullish bias. One trading opportunity on United Tech is a Bull Put Spread using a strike $105.00 short put and a strike $100.00 long put offers a potential 14.42% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $105.00 by expiration. The full premium credit of $0.63 would be kept by the premium seller. The risk of $4.37 would be incurred if the stock dropped below the $100.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for United Tech is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for United Tech is bullish.

The RSI indicator is at 32.43 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for United Tech

See what the IHS Markit Score report has to say about United Technologies Corp.
Mon, 07 Jan 2019 13:00:45 +0000
# United Technologies Corp

### NYSE:UTX

View full report here!

## Summary

* Perception of the company's creditworthiness is positive
* ETFs holding this stock are seeing positive inflows
* Bearish sentiment is low

## Bearish sentiment

Short interest | Positive

Short interest is extremely low for UTX with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting UTX.

## Money flow

ETF/Index ownership | Positive

ETF activity is positive. Over the last month, growth of ETFs holding UTX is favorable, with net inflows of $17.72 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing.

## Economic sentiment

PMI by IHS Markit | Neutral

According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however.

## Credit worthiness

Credit default swap | Positive

The current level displays a positive indicator. UTX credit default swap spreads are near the lowest level of the last three years and indicate the market's continued positive perception of the company's credit worthiness.

Please send all inquiries related to the report to score@ihsmarkit.com.

Charts and report PDFs will only be available for 30 days after publishing.

This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

Is It the Right Time to Invest in GE Stock at Current Multiples?
Mon, 07 Jan 2019 12:30:33 +0000
Will Restructuring Initiatives Put GE Back on Growth Trajectory?

(Continued from Prior Part)

## Attractive valuation

Last year’s ~57% plunge in General Electric (GE) stock has made its valuation attractive in the industrial sector. At current market prices, GE trades at a PE ratio of 9.96x, a significant discount to the industrial sector’s (XLI) PE ratio of 24.32x.

The stock also trades at a lower PE multiple to its top peers. The company’s main competitors such as Honeywell International (HON), 3M Company (MMM), and United Technologies (UTX) are trading at PE multiples of 16.77x, 19.50x, and 14.65x, respectively.

Furthermore, based on analysts’ next-12-month earnings projections, GE is trading at a discount to competitors. Forward PE ratios for GE, HON, MMM, and UTX are pegged at 8.91x, 16.70x, 17.68x, and 13.71x, respectively.

The PE valuation multiple is used widely because of its simplicity, but the measurement has some flaws. For example, earnings of a company can be easily manipulated, thus making the ratio meaningless. Therefore, we’ll compare these companies based on EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.

Currently, GE has an EV-to-EBITDA ratio of 31.54x, which is higher than HON, MMM, and UTX’s EV-to-EBITDA multiple of 10.87x 15.10x, and 10.87x, respectively. However, based on analysts’ next-12-month EBITDA estimates, GE is trading at a discounted EV-to-EBITDA multiple against HON and MMM, while at a premium to UTX. Forward EV-to-EBITDA ratios of GE, HON, MMM, and UTX are pegged at 9.40x, 11.85x, 12.38x, and 8.71x, respectively.

## Analysts’ rating and target price

GE has received a consensus “hold” recommendation from analysts polled by Reuters. Of the 20 analysts tracking the stock, four recommended a “strong buy,” five recommended a “buy,” nine recommended a “hold,” and the remaining two recommended a “strong sell.”

Analysts have lowered their target price and EPS estimates for General Electric since its third-quarter results. The stock’s current 12-month consensus target price of $12.37 is ~20% lower than its target price of $15.50 on October 30, the day it reported its third-quarter results.

The mean estimate for GE’s 2018 EPS fell to $0.71 from $0.83 on October 30. The company’s 2019 EPS estimate has been revised downward to $0.85 from $0.93.

Browse this series on Market Realist:

* Part 1 – GE Was Worst Performer in the Industrial Sector Last Year
* Part 2 – Will Restructuring Initiatives Bring GE Back to Growth Trajectory?
* Part 3 – Aviation Segment to Drive GE’s Revenues in 2019

Benzinga's Bulls & Bears Of The Week: Amazon, CBS, Intel, Nike, Tesla And More
Sun, 06 Jan 2019 14:27:32 +0000
Benzinga has featured looks at many investor favorite stocks over the past week. Bullish calls included tech giants and a media leader. Bearish calls included a big EV maker and a struggling retailer. …

The Death of the Industrial Conglomerate
Sat, 05 Jan 2019 16:32:00 +0000
Why General Electric, Honeywell International, and United Technologies are breaking up — and why it's good news.

United Technologies Fourth Quarter Earnings Advisory
Fri, 04 Jan 2019 22:00:00 +0000
FARMINGTON, Conn. , Jan. 4, 2019 /PRNewswire/ — United Technologies Corp. (NYSE: UTX) will issue its fourth quarter 2018 earnings press release on Wednesday, January 23 , prior to the stock market opening. …

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