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4-Star Stocks Poised to Pop: United Tech

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aerospace and defense conglomerate United Technologies (NYSE: UTX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at United Tech's business and see what CAPS investors are saying about the stock right now.

United Tech facts

Headquarters (Founded)

Hartford, Conn. (1934)

Market Cap

$63.4 billion

Industry

Aerospace and defense

Trailing-12-Month Revenue

$56.9 billion

Management

Chairman/CEO Louis Chenevert
CFO Gregory Hayes

Return on Equity (Average, Past 3 Years)

22.2%

Cash/Debt

$5.4 billion / $11.4 billion

Dividend Yield

2.8%

Competitors

Boeing (NYSE: BA  )
General Electric (NYSE: GE  )
Textron (NYSE: TXT  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 1,530 members who have rated United Tech believe the stock will outperform the S&P 500 going forward. These bulls include Tradersinfo and dmbjtr135.

Just last month, Tradersinfo tapped United Tech as an "impressive Company that boasts a double-digit growth rate." Our CAPS member concludes: "While a slowdown is under way, this is still one of the most attractive companies in the Conglomerates space."

In fact, United Tech boasts a solid three-year average operating margin of 13.9%. That's higher than that of rivals like Boeing (5.1%), General Electric (9.4%), and Textron (4.2%).

CAPS member dmbjtr135 elaborates on the bull case:

UTX has a long history of dividend increases and earnings surprises to the upside. It has an incredible diversified industrial portfolio, and is currently experiencing solid organic revenue growth in all five of its segments. Stock price performance is superior to that of the S&P, not counting the 2 % dividend yield. Company has strong cash flow and free cash flow, and has a reliable and proven CEO (Louis Chenevert) and management team.

What do you think about United Tech, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Interested in another easy way to track United Tech? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Textron. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:01 PM
UTX $73.02 Down -0.48 -0.65%
United Technologie… CAPS Rating: ****
TXT $23.52 Down -0.26 -1.09%
Textron, Inc. CAPS Rating: ***
GE $19.20 Down -0.05 -0.26%
General Electric C… CAPS Rating: ****
BA $70.00 Down -1.39 -1.95%
The Boeing Company CAPS Rating: ****

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