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:…
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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.