Struggling Dow Stock Could Bounce Back Next Month

Dow name UTX has been among the best stocks in December, historically

Managing Editor
Nov 27, 2018 at 12:16 PM
facebook X logo linkedin

It's been a rough day for blue chip United Technologies Corporation (NYSE:UTX) down 5.7% to trade at $120.56. Driving the stock lower is the announcement that the company will split into three separate entities: aerospace, elevators, and building divisions. It is one of the biggest companies ever to pursue such a split, and has been under scrutiny from investors to separate. UTX also said it completed its purchase of Rockwell Collins.

Jefferies chimed in, noting the move could create near-term pressure on the shares, but ultimately bring long-term stability. More short-term headwinds is hardly what United Technologies stock needs, having already shed 14% this quarter. However, the Dow stock could start to claw back in December, if past is prologue, as UTX tends to outperform in the final month of the year.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, UTX is one of the 25 best S&P 500 stocks to own in December. Looking back 10 years, the stock boasts a 90% win rate, and has an average rate of return of 3%. This means United Technologies stock has been the best Dow stock to own next month, historically speaking. 

Daily Stock Chart UTX

Today's drop takes United Technologies stock below its year-to-date breakeven point. Overall, UTX has given back 16% since its Sept. 21 high of $144.15. However, today's downside is being contained near the $119 level, an area that supported the shares back in late October. 

Meanwhile, analyst sentiment remains bullish, despite the recent choppy trading. Of the 11 brokerages covering UTX, nine rate it a "buy" or better, with zero "sells" on the books. What's more, the stock's average 12-month price target of $150.25 sits in uncharted territory for the Dow name.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI