United Tech poised for growth
You many not believe this but we are beginning to come out of the recession and we should be looking for companies that are poised for growth. Companies that have a world wide foot print and already are established in China and India should benefit first. United Technologies (UTX) is just such a company.
United Technologies Corporation 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.
China's economy is already flying and they are buying UTX products. Elevators from Otis, jet engines from Pratt & Whitney, helicopters from Sikorsky and refrigeration units from Carrier. This new orders are replacing the weakness UTX has experienced in the US and European markets.
The stock is enjoying recent price momentum that has earned it a 100% Barchart technical buy signal. The stock trades at 78.43 which is above its 50 day moving average of 74.09. In the last month the 50 day moving average has gained 12.95% while the stock has gained 5.06%. That shows a strong support level. The Relative Strength Index is 66.26% and rising.
Wall Street brokerage analysts consider this stock a core holding and have published 16 buy and 6 hold reports for their financial advisors to push. Although sales are only expected to increase 2.60% this year and 5.20% next year earnings are the real story. The analysts predict double digit increases in EPS of 14.60% this year, 12.30% next year and a continued annual EPS growth rate of 10.03% for at least 5 years out.
There is wide and positive investor sentiment for this stock with the CAPS members on Motley Fool voting 1,403 to 86 that the stock will beat the market. The All Stars agree with a similar vote of 429 to 14.
Of the Wall Street columnists Fool follows 20 have written positive articles with no negative press noted.
If you are looking for a financially strong S&P 100 company to add to your core holdings consider that UTX has:
1 - Wall Street analysts predicting double digit earnings growth for at least 5 years
2 - 100% Barchart technical buy signal confirming recent upward price momentum
3 - Buy recommendations by both Wall Street brokerage analysts and press
4 - .Large and positive investor following
Jim Van Meerten is an advisor to Marketocracy Capital Managementwho uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or emailJimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.