UTX - Is United Technologies Stock a Good Value Now?
Not counting peers like Honeywell (NYSE: HON), General Electric (NYSE: GE), and others, United Technologies Corporation's (NYSE: UTX) earnings have a direct relevance to five companies -- some of which don't even exist yet. The five are UTC itself; its future merger partner Raytheon Company (NYSE: RTN); the future merged company Raytheon Technologies; and the two companies that UTC will spin off -- Carrier and Otis.
So, in light of the earnings report, United Technologies investors should ask whether one of the other investment options is also a good value. Here's the lowdown.
The company's plan is to first separate Carrier and Otis from UTC, and then merge the remaining aerospace businesses (Pratt & Whitney and Collins Aerospace) with Raytheon, to create Raytheon Technologies. For reference, Raytheon shareholders will receive 43% of Raytheon Technologies, with United Technologies investors (following the Carrier and Otis spinoff) receiving 57%.