By: Michael E. Martinez

United Technology is one of the best run companies in the world. They own such companies as Otis, Carrier, Pratt & Whitney and Sikorsky. This company is in the Dow Jones Industrial Average, so you know its important. But thats not a reason to buy this stock. Not only do they have strong earnings, this company has momentum to keep growing as I see the manufacturing sector really expand in the near future.

I also think at these stock prices, United Technology is vastly undervalued, as it only trades eighteen times earnings. The debt to equity ratio is sharply lower than that of its peers. Keep in mind, the lower the debt ratio, the less debt it has. During the past twelve months, United Technology has had total sales of $42.72 billion and total income of $3.16 billion. In the past 12 months the stock has risen over 11% but in my opinion thats not far enough, I see this stock going to at least $80 by this time next year based on demand for their products and price evaluation.

Don't expect this stock to make you money fast, its a slow climber such as with Caterpillar and Altria, all which are Dow components and good companies, but are too big for fast price fluctuations. Even if this company doesn't rise in the short term, you might want to wait for a small pullback to the low $50's to buy some more. Not just the fundamentals, but also the management makes this company great to invest in.