UTX - Here's Why United Technologies Rocketed Higher in 2019
Shares in industrial conglomerate United Technologies (NYSE: UTX) rose 40.6% in 2019, according to data provided by S&P Global Market Intelligence. There are two reasons for the increase: operational performance and the announcement of a deal to merge the aerospace business (Pratt & Whitney and Collins Aerospace) with defense company Raytheon (NYSE: RTN). I'll briefly discuss both in turn.
It's been a mixed year for this large and diverse company. A look back at its third-quarter earnings report shows that the aerospace businesses have outperformed in 2019. Pratt & Whitney is on track to do slightly better than management expected at the start of the year, and Collins Aerospace has outperformed due to a buoyant aerospace market (aftermarket, defense, and original equipment) and the successful integration of the Rockwell Collins acquisition.
United Technologies makes a wide range of aviation solutions, ranging from engines to avionics, landing gear, and even interiors. Image source: Getty Images.