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Loyal bloggingstocks.com readers will recall the review of General Electric (NYSE:GE), the diversified industrial giant that, via its fundamentals and breadth of operations, serves as a "mini-mutual fund" in one company. In other words, purchasing 50 or 100 shares of GE is tantamount to buying a mid-cap equity mutual fund, sans the load fee.
But are there any other stocks that rival GE's designation.? United Technologies (NYSE:UTX) is close. UTX is a multi-industry holding company that undertakes operations in six impressive business segments: Otis, Carrier, Pratt & Whitney, Sikorksy, Hamilton Sunstrand, UTC Fire & Security.
-Otis is the world's largest maker of elevators and escalators. Otis account for about 22% of UTX's revenue and has a solid international presence, with 80% of the divisions' revenue stemming from international sales.
-Carrier, 29% of UTX's revenue, is the world's largest maker of commercial and residential heating/ventilation/air conditioning systems, and also offers refrigeration and food service equipment.
-Pratt & Whitney, 22% of UTX's revenue, is one of the three-largest jet engine makers in the world, supplying engines to both Boeing (NYSE:BA) and Airbus, and to the U.S. Department of Defense [fighter jets and transport aircraft.]
-Hamilton Sunstrand, 10% of UTX's revenue, is a leading aerospace and industrial products manufacturer.
-UTC Fire & Security 10% of UTX's sales, provides safety products and services, with more than 80% of its revenue stemming from international sources.
-Finally, Sikorsky, 7% of UTX's revenue, is one of the leading military and commercial helicopter manufacturers in the world.
Hence, while UTX's breadth is not as wide as GE's, the company nevertheless offers an impressive "operational pantry" of civilian and military, domestic and foreign, large company and mid-size company clients. Further, to be sure, UTX's stock is levered to the U.S. economic cycle -- it has experienced two $40-level to $25-level price drops in the past 10 years --- but its customer breadth and solid defense work generally translate into shallower drops and quicker bounce-backs than a typical large cap company.
And as the understated analysts often say on Wall Street, smaller drops and quicker bounce-backs are not bad things.
Investment Category: United Technologies is a moderate-risk stock not suitable for low-risk investors. A reduction in U.S. defense spending growth could depress UTX's revenue, but otherwise its companion operations make the stock an appropriate purchase for patient investors.
-Finally, Sikorsky, 7% of UTX's revenue, is one of the leading military and commercial helicopter manufacturers in the world.
Hence, while UTX's breadth is not as wide as GE's, the company nevertheless offers an impressive "operational pantry" of civilian and military, domestic and foreign, large company and mid-size company clients. Further, to be sure, UTX's stock is levered to the U.S. economic cycle -- it has experienced two $40-level to $25-level price drops in the past 10 years --- but its customer breadth and solid defense work generally translate into shallower drops and quicker bounce-backs than a typical large cap company.
And as the understated analysts often say on Wall Street, smaller drops and quicker bounce-backs are not bad things.
Investment Category: United Technologies is a moderate-risk stock not suitable for low-risk investors. A reduction in U.S. defense spending growth could depress UTX's revenue, but otherwise its companion operations make the stock an appropriate purchase for patient investors.
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