May 23, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer-goods editor/analyst Austin Smith discuss topics around the investing world.
In today's edition, Brendan and Austin discuss Dow component United Technologies and whether it's a buy, sell, or hold. United Technologies has slightly underperformed the Dow so far this year by a few percentage points, but Brendan thinks the company is a solid long-term buy candidate. United Tech is the eighth most influential stock on the price-weighted Dow, so an uptick in the stock would be good for the index as a whole. Brendan sees significant opportunity for United Technologies in the booming aerospace sector, which it has exposure to through its Pratt Whitney division, as well as its recent huge acquisition of Goodrich. Add in a dividend of 2.6% and a forward P/E around 10, and Brendan thinks this all adds up to a solid long-term buy.
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