3 Reasons to Buy United Technologies
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and health-care editor/analyst David Williamson discuss topics across the investing world.
In today's edition, Brendan and David discuss the bull case for United Technologies. With its $16.5 billion acquisition of Goodrich, United Technologies will be using the aerospace sector as its main driver of growth. The good news for United Technologies is that the commercial aviation market is expected to total $4 trillion by 2030, so the opportunity for tremendous growth is certainly there. Brendan also likes that United Technologies is well-diversified both geographically and across industries. The company gets 20% of its revenue from emerging markets and relies on its Carrier, Otis, and Pratt Whitney divisions for exposure to different industries. Finally, the stock looks cheap, and United Tech sports a dividend yield that's above the market average.
Considering that United Technologies gets 20% of its revenue from emerging markets, many investors may be nervous about investing in companies that are internationally focused, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. We've uncovered three other picks poised to take advantage of this trend, which we outline in our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. Click here to get your copy today!
At the time this article was published Brendan Byrnesowns shares of United Technologies.David Williamsonowns shares of General Electric. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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