Read Also: 5 Most Undervalued DJIA Stocks

Analysts according to Thomson Reuters have a consensus price target objective of $88.79 over the next year versus a current share price of $74.90. That gives an implied upside of about 18.5% and its 2.6% dividend yield is likely to be raised sometime around this coming summer if all goes well.

One key issue is that much is price-based because United Tech is also down from its 52-week high the most of the three DJIA conglomerates with a drop of more than 18% from its 52-week high.  The market cap of $68 billion keeps United from being in the mega-cap or super-cap group and not that much higher than the $58 billion worth of 3M and only one-third of GE’s market cap.

There is a wild card here, a very big wild card… The Goodrich Corporation (NYSE: GR) acquisition which has been a huge overhang. That is the trick, and a clean deal will allow it to soar but a troubled deal could act as as a continued thorn in its side.

Read Also: DJIA Stocks Could Rise 12% (or 15%) In 2012

With a 52-week trading range of $66.87 to $91.83, United Tech does not even to reach a 52-week high to reach the consensus analyst price target.

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JON C. OGG

AutoNation Inc. (NYSE: AN) 38.1% year-to-date; caution: at $38.94 the consensus price target is $31.28.

Ross Stores Inc. (NASDAQ: ROST) 38.7% year-to-date; caution: at $87.73 the consensus price target is $85.00.

Limited Brands, Inc. (NYSE: LTD) 39.0% year-to-date; at $42.71 the consensus price target is $44.71.

Goodrich Corporation (NYSE: GR) 39.2% year-to-date; This is being acquired, so no color.

Tesoro Corporation (NYSE:TSO) 39.9% year-to-date; at $25.94 the consensus price target is $20.31.

EQT Corporation (NYSE:EQT) 41.6% year-to-date; at $63.50 the consensus price target is $72.28.

Electronic Arts Inc. (NASDAQ: ERTS) 42.6% year-to-date; at $23.35 the consensus price target is $25.63. This was previously listed as our top pick for the best video game stock for 2011.

Whole Foods Market, Inc. (NASDAQ: WFM) 42.6% year-to-date; at $72.12 the consensus price target is $74.47.

Ralph Lauren Corporation (NYSE: RL) 43.2% year-to-date; caution: at $158.79 the consensus price target is $150.00.

Teradata Corporation (NYSE: TDC) 44.9% year-to-date; at $59.66 the consensus price target is $60.56.

Range Resources Corporation (NYSE: RRC) 53.0% year-to-date; at $68.84 the consensus price target is $76.50.

Mastercard Incorporated (NYSE: MA) 54.9% year-to-date; at $347.24 the consensus price target is $374.82.  It seems odd to see one financial stock here.

Humana Inc. (NYSE: HUM) 55.1% year-to-date; at $84.89 the consensus price target is $88.71. Health insurance has not been as bad of a business as the administration was looking for.

Chipotle Mexican Grill, Inc. (NYSE: CMG) 58.1% year-to-date; caution: at $336.12 the consensus price target is $328.45.  The growth continues, but it is at or close to being fully valued.

V.F. Corporation (NYSE: VFC) 60.4% year-to-date; at $138.22 the consensus price target is $144.33.

Intuitive Surgical, Inc. (NASDAQ: ISRG) 68.3% year-to-date; caution: at $433.86 the consensus price target is $419.27.  DaVinci sales remain robust as more surgeons are looking for robotic surgery capabilities.

Biogen Idec Inc. (NASDAQ: BIIB) 73.5% year-to-date; caution: at $116.36 the consensus priced target is $115.22.  Here is how this compared to the rest of its peers before earnings season.

El Paso Corp. (NYSE: EP) 81.8% year-to-date; being acquired so no color.

Cabot Oil & Gas Corporation (NYSE: COG) 105.3% year-to-date; ; at $77.72 the consensus price target is $91.32.

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JON C. OGG

S&P 500 YTD TOP 10 (31Dec10 – 29Sep11)

Ticker

YTD Price Change (%)

Close Price 29Sep11

Close Price 31Dec10

Market Cap($Mil)

Short Interest as % of Shares

69.4

64.13

37.85

6700.9

0.40%

48.8

70.49

47.37

11916.5

9.50%

47.2

313.14

212.66

9815.7

8.70%

46.5

328.37

224.11

39630.3

1.20%

45.7

125.56

86.18

13775.7

3.00%

44.8

373.22

257.75

14586.6

3.50%

40.9

94.46

67.05

22910.9

0.30%

37.5

121.08

88.07

15135.6

1.10%

37.3

70.91

51.65

9511.1

2.10%

37.1

75.07

54.74

12523.9

0.50%

Other rating actions were announced for General Motors Co. (NYSE: GM), Liberty Media LLC, Lubrizol Corp., now wholly-owned by Berkshire-Hathaway Inc. (NYSE: BRK-A; BRK-B), ConAgra Foods Inc. (NYSE: CAG), Orbitz Worldwide Inc. (NYSE: OWW), Web.com Group Inc. (NASDAQ: WWWW), and Cummins Inc. (NYSE: CMI)

General Motors Co. (NYSE: GM) is having its ‘Ba2′ corporate family rating and its ‘Baa3′ secured credit facility ratings reviewed for possible upgrade at Moody’s. The company’s new union contract and its improved operating and financial performance are the drivers of the review. Global economic uncertainty and the cyclic nature of the automaking business are the agency’s biggest concern. Also today, S&P assigned ‘AAA’ ratings to $500 million in asset-backed notes for Ally Bank. The funds are primarily intended to finance purchases of new cars from GM and Chrysler.

Liberty Media LLC and its Liberty Starz Group (NASDAQ: LSTZA; LSTZB) and Liberty Capital Group (NASDAQ: LCAPA; LCAPB) have received a ratings downgrade from Moody’s on senior unsecured bonds from ‘B1′ to ‘B3′ and the probability of default rating was downgraded from ‘Ba3′ to ‘B1′. The downgrades follow a court ruling that allows Liberty Media to split-off certain assets. The agency noted that 18% of Liberty Media’s revenues and 37% its enterprise value are being removed, which “disproportionately and negatively affect Liberty Media’s bondholders.”

Berkshire Hathaway Inc. (NYSE: BRK-A; BRK-B) subsidiary Lubrizol Corp. received a ratings upgrade from Moody’s following its acquistion by Warren Buffett’s company. The agency raised Lubrizol’s debt ratings from ‘Baa1′ to ‘Aa2′ with a stable outlook. There’s no substitute for having access to really deep pockets, or as Moody’s says, Berkshire-Hathaway “now guarantees Lubrizol’s public debt.”

ConAgra Foods Inc. (NYSE: CAG) has had its ‘BBB’ corporate credit and its ‘A-2′ short-term and commercial paper rating, among others, re-affirmed by S&P following ConAgra’s decision to give up its attempts to acquire Ralcorp Holdings Inc. (NYSE: RAH). All the company’s ratings have been removed from CreditWatch and the ratings outlook has been declared stable.

Orbitz Worldwide Inc. (NYSE: OWW) has had its ‘B’ corporate credit rating put on CreditWatch with negative implications by S&P. The agency downgraded debt for Travelport Holdings Ltd. yesterday, which together with The Blackstone Group (NYSE: BX) owns 55% of Orbitz.

Web.com Group Inc. (NASDAQ: WWWW) received a preliminary rating of ‘B’ with a stable outlook from S&P on its corporate credit.

Cummins Inc. (NYSE: CMI) received a corporate credit upgrade from ‘BBB+’ to ‘A’ from S&P. Cummins is an engine and parts maker and has been performing above expectations for the past three quarters. Analysts have raised EPS estimates for the current quarter by 10%.

Paul Ausick

The Direxion Daily Russia Bear 3X ETF (NYSE: RUSS) is today’s biggest gainer so far, up nearly 18% at $64.93 after posting 52-week higher earlier this morning of $65.05. This 3x leveraged fund has recovered nicely since the downgrade of US debt in early August, which sent shares to a 52-week low. As with all triple leveraged funds, this one is not for the faint of heart.

The ProShares UltraShort Russell MidCap Value Fund (NYSE: SJL) is up nearly 15%, at $66.78, in a 52-week range of $47.31-$79.36. This fund is a 2x leveraged bet against the daily performance of the Russell MidCap Value Index. Another good bet today, but like other leveraged funds, tomorrow could be a different story.

The Direxion Daily Basic Materials Bear 3x Shares ETF (NYSE: MATS) is up more than 14.5%, at $58.06 in a 52-week range of $32.35-$61.24. We noted earlier this morning the collapse [http://247wallst.com/2011/09/22/gold-miners-outshine-copper-miners-rio-bhp-vale-fcx-scco-nem-abx-auy-slw-gld-gdx-slv-sil/] in metals and mining, and this 3x leveraged bear fund is reflecting that decline.

PVF Capital Corp. (NASDAQ: PVFC) is the leading equity gainer today, up more than 14%, at $1.75, in a 52-week range of $1.27-$2.23. Average daily volume on this stock is just over 13,000 shares. The company is bank holding company for a northeast-Ohio bank with 17 branches.

Goodrich Corp. (NYSE: GR) finally got the acquisition offer everyone expected from United Technologies Corp. (NYSE: UTX). Goodrich shares posted a new 52-week high this morning of $120.93, following United’s $127.50/share all-cash offer. The deal is valued at $18.4 billion, including $1.9 billion of Goodrich debt that United will assume.

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) is up more than 13%, at $4.00, in a 52-week range of $2.71-$20.25. The company is a dry-bulk shipper and this move is counter-intuitive given the expected weakness in iron ore and coal demand. The recent purchase of OceanFreight, Inc. (NASDAQ: OCNFD) by DryShips Inc. (NASDAQ: DRYS) has pushed up speculation that other M&A activity might be coming in the shipping industry. Seanergy has a market cap of around $30 million and a decent-sized fleet, making it a prime suspect for a takeover.

Paul Ausick

United Technologies (NYSE: UTX) will buy Goodrich (NYSE: GR) for $16.5 billion. (Reuters)

China’s PMI for September was weak. (Reuters)

Hewlett-Packard (NYSE: HPQ) may fire its CEO and replace him with Meg Whitman. (WSJ)

Greece made further, deeper cuts to its expenses to win bailout money. (Reuters)

Tim Geithner will present more detail on the government’s plans to revive the economy. (Reuters)

Eric Schmidt said Google (NASDAQ: GOOG) has not altered its search results to help its own products. (Reuters)

Roubini says the EU crisis could cause Great Depression II. (Reuters)

Long-term bonds rose on news of Federal Reserve purchases. (Reuters)

Hulu now has over one million paid subscribers. (Reuters)

Moody’s said some U.S. companies with weak balance sheets are unlikely to default. (WSJ)

As more companies create  business which rely on Facebook, the site’s users push back. (WSJ)

Efforts to refinance homes may help the economy slightly. (WSJ)

Greece will put a higher tax on pensions. (WSJ)

S&P cuts its rating of several Italian banks. (WSJ)

Fosters was bought by SABMiller for $10 billion. (WSJ)

Bridgestone will increase the size of one of its U.S. plants. (WSJ)

The New York Times (NYSE: NYT) expects a drop in revenue and a slide in online sales. (WSJ)

Chrysler and the UAW failed to close a labor deal. (WSJ)

The FDA is under pressure to put more warnings on the Sanofi (NYSE: SNY) heart-rhythm drug Multaq. (WSJ)

Royal Dutch Shell (NYSE: RDS) said it will stay in the refining business. (WSJ)

Moody’s downgraded Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C). (WSJ)

Nokia (NYSE: NOK) appointed a new CTO. (Bloomberg)

Douglas A. McIntyre

The SEC is examining whether anyone profited from trading ahead of the rating agency downgrade of US debt (WSJ)

Samsung may sue Apple (NASDAQ: AAPL) issues on from its new iPhone (Reuters)

Transatlantic Holdings (NYSE: TRH) may seek a “standstill” agreement with potential Validus Holdings NYSE: VR) (WSJ)

United Technologies (NYSE: UTX) continues talks to buy Goodrich (NYSE: GR) (WSJ)

Douglas A. McIntyre

Kips Bay Medical, Inc. (NASDAQ: KIPS) is up nearly 22%. The company is developing a new device for use in coronary artery bypass grafts. The share price rise doesn’t appear to be attributable to any specific news from or about the company.

Bluefly Inc. (NASDAQ: BFLY) is an e-commerce retailer of men’s and women’s designer clothes and eyewear. Shares are up more than 13% this morning as the stock continues to benefit from a large share purchase last week by investor George Soros.

Goodrich Corp. (NYSE: GR) is up more than 11% on continuing speculation that the company would be acquired by United Technologies Corp. (NYSE: UTX) in a $17 billion takeover. Goodrich is a supplier of aircraft parts and services, and its aftermarket business is strengthening.

Global Education & Technology Group Ltd. (NASDAQ: GEDU) shares are up more than 12% this morning. The company provides foreign language training and test preparation services in China. The company’s CFO resigned in late August.

C-Tracks Citi Volatility Index Total Return ETN (NYSE: CVOL) is up nearly 14% this morning. The fund is a directional measure of the implied volatility of US large-cap stocks.

Direxion Daily Emerging Markets Bear 3X ETF (NYSE: EDZ) is up about 12% this morning. The fund is a triple-leveraged play on the opposite price-performance of the MSCI Emerging Markets Index.

The stocks leading the downturn:

Shengkai Innovations Inc. (NASDAQ: VALV) is down more than -40% this morning on last week’s announcement that the company was re-directing its business away from its traditional markets and attempting to secure new business in the oil and chemical markets. Some investors have raised concerns over the company’s accounting practices, a particular problem for many Chinese companies recently. The stock has already traded more than 4x its average daily volume.

Momenta Pharmaceuticals, Inc. (NASDAQ: MNTA) is down  more than -25% as the company has been unable to prevent its stock from falling below technical support levels. So far today about 3x normal daily volume has been traded.

JinkoSolar Holding Co. Ltd. (NYSE: JKS) is down more than -22% after being forced to close a factory that has been accused of polluting a nearby river. The company’s shares also received two new downgrades this morning. So far today volume is about 3x normal.

Ambient Corp. (NASDAQ: AMBT) shares are down more than -15%. The company provides smart grid communications software and platforms. There’s no particular news, but investment in smart grid projects is likely to stall as the US economy remains weak.

GT Advanced Technologies, Inc. (NASDAQ: GTAT) shares are down nearly -10% as the entire solar sector continues to get pounded. Customers for GT’s semi-conductor making equipment are not expected to keep placing orders for more as the market for solar PV panels continues to be oversupplied.

The Direxion Emerging Markets Bull 3X ETF (NYSE: EDC) is off nearly -10%, as it is expected to perform in exactly the opposite direction of the 3X bear fund we noted earlier.

Paul Ausick

One company will be the ADT North America residential security business with annualized revenue of approximately $3 billion and approximately 16,000 employees. Naren Gursahaney, the current president of Tyco’s security solutions segment, will become the new company’s chief executive officer.

The second will be a provider of flow control products and services with annualized revenue of approximately $4 billion and approximately 15,000 employees. Patrick Decker, the current president of Tyco’s flow control segment, will become the new company’s chief executive officer.

The third company will be commercial fire and security business with annualized revenue of approximately $10 billion and approximately 69,000 employees. George Oliver, the current president of Tyco’s fire protection segment, will become the company’s chief executive officer.

What is interesting is that this move comes at a time right after rumors that United Technologies Corporation (NYSE: UTX) is out raising a large financing.  Reports over the weekend noted that the $68 billion United Tech is examining a bid for Goodrich Corporation (NYSE: GR) with a market cap of $11.6 billion.  Other companies were on the rise last week as potential buyout candidates as well.

Calls have been made for General Electric Co. (NYSE: GE) to also deconglomerize itself.  The company has made divesting moves like the NBC Universal (still partial sale) and others, although in recent months Jeff Immelt has said that he is happier with GE’s business portfolio than he has ever been.  If Immelt did not decide to break up GE shortly after the recession, he is unlikely to make such a move during better times or during less-bad times unless the benefit is overwhelmingly more.

Some conglomerates get larger while some shrink.  Former CEO Dennis Kozlowski put Tyco together by acquisition after acquisition.  His empire was taken away from him when he was ousted and sent to prison.  What remains of his former empire is now being broken up yet again.

JON C. OGG

Obama jobs plan geared toward Democrat voters. (Reuters)

Greece must take more austerity measures to get bailout money. (Reuters)

Moody’s bias on state and local government remains negative. (Reuters)

Samsung files counter claims against Apple (NASDAQ: AAPL) in Australia. (Reuters)

Private equity firms turn attention from Aol (NYSE: AOL) to Yahoo! (NASDAQ: YHOO). (Reuters)

Federal Reserve may set employment and inflation targets. (WSJ)

Netflix (NASDAQ: NFLX) to split streaming and DVD operations, with the latter called Qwikster. (WSJ)

Ford (NYSE: F) and Chrysler must battle unions now that the UAW has settled with GM (NYSE: GM). (WSJ)

U.S. cattle numbers fall. (WSJ)

United Technologies (NYSE: UTX) may buy Goodrich (NYSE: GR). (WSJ)

World Bank chief says troubled economies cannot count on help from China. (WSJ)

Bank for International Settlements: Risk premium attached to developed nations to remain high. (WSJ)

New home prices gain less in China. (WSJ)

Google (NASDAQ: GOOG) faces antitrust questions from Congress and the FTC. (WSJ)

Sales of Microsoft’s (NASDAQ: MSFT) Kinect are slow in China. (WSJ)

Coca-Cola (NYSE: KO) to add smaller bottle sizes with lower prices. (WSJ)

“The Detrimental Effects of Power on Confidence, Advice Taking and Accuracy” study shows managers disregard employee comments. (WSJ)

Legal problems with mortgage foreclosures continue. (WSJ)

EBay (NASDAQ: EBAY) may set new auction plans to challenge Amazon (NASDAQ: AMZN) and Groupon. (WSJ)

News sites like the Huffington Post begin to publish books, a move that challenges e-publishers. (NYT)

India and China have success selling biotech drugs around the world. (NYT)

Facebook to offer new features that allow users to conveniently share music and other media. (NYT)

Facebook sets a deal with Diageo (NYSE: DEO) to market liquor overseas. (FT)

China considers $728 billion stimulus if the global economy falters. (Bloomberg)

Douglas A. McIntyre