United Technologies Looks Like a Good Value, But Risk Is Rising
The failure of an early return to service (RTS) of the Boeing (NYSE: BA) 737 MAX is starting to bite at aerospace suppliers, but for now, the market seems to be accepting it as a question of "when, not if." Indeed, the latest earnings report from industrial conglomerate United Technologies (NYSE: UTX) and the market's reaction to it only served to enhance this perception. Let's take a look at what happened and what you need to know before you buy stock in United Technologies and/or its future merger partner Raytheon (NYSE: RTN).
Image source: Getty Images.
In case you are wondering why I've referenced Raytheon, it's simply because the company is set to merge with the aerospace businesses of United Technologies (UTC), namely Collins Aerospace (aerostructures, interior, avionics, and mechanical systems) and Pratt & Whitney (engines and aftermarket). Consequently, if you are buying Raytheon, you are de facto buying into the future prospects of United Technologies' aerospace businesses too.
Source Fool.com
