United Technologies Corporation (UTX), The Boeing Company (BA), General Electric Company (GE): Accelerated Growth at This Technology Company

Conclusion

With its next generation aircrafts (Boeing 787 and Dreamliner) United Technologies Corporation (NYSE:UTX) will be able to take advantage of the increasing need to replace aging fleets in America as well as the increase in demand in Asia. China’s increasing thirst for skyscrapers will help to drive demand in its elevators and air conditioners. Further, it has been awarded a $65 million contract for engine maintenance by the DoD.

Given the above, United Technologies is poised for strong growth in FY13 and FY14. The stock deserves a “Buy” as it is well positioned to capture the rapid urbanization and strong commercial aerospace growth despite the slowdown in Europe and decreased US defense spending. The only point of concern is the higher costs, but given its restructuring plans it should be able to lower costs, resulting in the added benefit of improved margins.

The article Accelerated Growth at This Technology Company originally appeared on Fool.com and is written by Sujata Dutta.

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