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Five volatile stocks worth the risk

United Technologies

Aerospace and defense contractor United Technologies (UTX) has a beta of 1.07, making it slightly more volatile than the overall market. Over the last year, the stock has been a solid performer, and shares really took off following the presidential election. The main reason for the latest move higher is anticipation that President Trump will make significant increases to military spending, which was a main focus of his campaign leading up the election. UTX has a decent valuation, with a P/E of 18.7, but earnings growth estimates are not the best. This year the street expects earnings to fall by a modest 0.5% before rising 7.4% in 2018. Over the next five years, analysts see average annual earnings growth of 6.6%, which could be a very low estimate depending on just how much Trump is able to boost overall spending on the U.S. military. The stock trades at $120.03, and analysts have a $122.92 price target on the stock at this time.


Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.