United Tech May Still Be Best Conglomerate For 2012 (GE, UTX, GR)

General Electric Co. (NYSE: GE) is a personal favorite among conglomerate stocks right now for 24/7 Wall St. and we went as far as to add GE to the 2012 Model Dividend Portfolio.  Still, it was United Technologies Corporation (NYSE: UTX) which was called the conglomerate with the most upside in 2012.

Today’s earnings report was originally taken as a disappointment: EPS of $1.47 on revenue of $14.97 billion; consensus estimate called for EPS of $1.46 on revenue of $15.07 billion.  Perhaps that disappointment was a gift.  After opening down about 1% at $76.95 and after having traded briefly under even $76.00, this stock has come screaming back and it is now up marginally for the day so far.

The wild card is the ongoing acquisition of Goodrich Corporation (NYSE: GR).  If today’s reaction is any judge, UTX remains the conglomerate with the most upside based on the price and the consensus price target objective.  With shares up 0.25% at $77.98 on the day now, the consensus price target from Thomson Reuters of $89.44 (before the changes after earnings in the coming days) is $89.44.  That is still upside of about 15% and United has that 2.5% dividend yield which should be rising soon as well.

JON C. OGG