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Tickers in this Article: UTX, GE, TYC, BA
Some investors shun diversified companies. Either they're too hard to follow or aren't very exciting. But if a large organization can have a sturdy foothold in a number of businesses that have the potential to grow over time, it could also potentially generate large profits for patient investors - exciting, right? With that in mind, the extremely diverse United Technologies (NYSE:UTX) is on the heels of its third quarter earnings.

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Clearing the Air
United is engaged in a number of businesses (including elevators, air conditioning systems and aircraft engines) that could see increased demand in future years. In the period ended September 30, the Connecticut-based company earned $1.14 a share, which was 2 cents better than Wall Street's expectations. It also managed to beat expectations on the revenue line, which is a real attention-getter.

Another thing in its favor is that in the last 30 days, according to data on Yahoo! Finance, is that the estimate for this year has gone up 1 cent, from $4.08-4.09. The 2010 estimate has gone up a penny as well, from $4.47-4.48. Of course, a penny is not very huge, but there is a chance it could attract attention and potentially draw in new investors.

Trading Places
It's also important to note that United trades at about 16-times this year's estimate and at 14-times the 2010 estimate. That's not ultra cheap, but it's not ultra high either, given the future potential of its business lines and because the company is expected to grow 8% per annum in the next five years.

Also, the stock appears to be hovering around its highs and, if it can make a new annual high, there is the possibility of attracting new UTX shareholders. Second, the company offers a dividend and has a nice history of paying them.

Other Conglomerates that Warrant Inspection
The first company that naturally comes to mind is General Electric (NYSE:GE). It too offers a dividend, and in the long term, the company's position in appliances and engines is likely to pay off in a large way, as the economy expands here in the United States. Also, Swiss-based Tyco (NYSE:TYC), which is into safety and security products, is trading near its 52-week high and appears as if it could make another high. It has positively exceeded analyst's EPS expectations in every one of the last four quarters, according to Yahoo! Finance.

As an aside, although its not a conglomerate, those that are partial toward the aviation business and/or airplanes might want to check out Boeing (NYSE:BA) Although it reportedly trimmed its 2009 forecast, there will be a wide increase in the demand for flights in the future.

The Bottom Line
United Technologies looks great for the longer term. Right now the stock is trading at a favorable price-to-expected earnings multiple. Its recent earnings beat is impressive, and there is solid upside potential here over the next year. (To learn more, check out Conglomerates: Cash Cows Or Corporate Chaos?)

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