Company United Technologies Corporation UTX Explain which ma

Company: United Technologies Corporation (UTX)

Explain which macroeconomic factors or economic issues should have the largest impact on your company’s sales and profitability. This may include cyclical changes or structural changes.

Is there anything else about your company that, in your opinion, could affect its future growth and financial outlook? (For instance: product liability issues, labor dispute, litigation, prediction of low earnings). Be very specific. Don’t guess, please. You will need to read recent articles about your company to answer this question.

Finally, make a buy/sell/hold recommendation about your company stock. Justify your recommendation based on your analysis above.

please include links to anything used

Solution

The Company had noticed growth in the sales over past three years. The EPS and cash flow noticed growth and performed above the expectations of the Company.

The Company looks forward to the better positioning with the Rockwell Collins acquisition. The new tax law changes could impact the GAAP EPS. The new Otis equipment orders increased despite of the pricing pressures in China.

The macro economic factors were not favourable during the year for most of the businesses but it worked for United Technologies. This was possible because of company’s diversified business mix and the international presence.

The demand for commercial aircraft remained stagnant last year and the Aviation got a hit in sales. The global economic climate is improving and the Company will get benefit this year.

The Company has good future growth opportunities and the businesses are well supported with the urbanization and digitization. The Company sees a good growth with the settling macroeconomic environment. The profits and sales will rise with structural cost reduction, innovation, and the perfect capital allocation.

The company expects adjusted EPS as $7.1, Total sales as $64 billion, free cash flow as $5 billion in the year 2018.

The stock of the company is highly overvalued because the price estimate was $122. The stock of the Company has the buy signal from the short term moving average and sales signal with the long term moving average.The investors should make the decision carefully as the company announced to break up in three companies. The decision will be clear at the end of 2018.