Is United Technologies a Worthwhile Investment?

With shares of United Technologies (NYSE:UTX) trading around $104, is UTX an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

United Technologies provides technology products and services to building systems and aerospace industries all around the world. The company operates in six segments: Otis, Carrier, UTC Fire & Security, Pratt & Whitney, Hamilton Sundstrand, and Sikorsky. Air travel and defense have been on the rise over the last several years as governments around the world consistently demand improved aerial technology. Companies and consumers also demand improved efficiency and reduced prices, further fueling demand. Aerial technology is gaining market share as a preferred method of transportation, so look for companies like United Technologies to see rising profits.

United Technologies will no longer be placing 4,000 employees on unpaid leave due to the government shutdown. United Technologies had planned on placing 2,000 workers at its Sikorsky Aircraft unit on leave today as military inspectors needed to complete work there were furloughed. An additional 2,000 United Technologies employees were to be placed on leave if the shutdown extends further into this week. But now, according to Bloomberg, the Pentagon has said that most of its civilian employees that were placed on unpaid leave because of the shutdown will be put back to work this week.