united technologies

SPDR S&P 500 ETF $202.31 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. companies that are chosen based on their market cap, liquidity and industry group.

The index’s highest-weighted stocks are Apple, ExxonMobil, Microsoft, Procter & Gamble, Johnson & Johnson, J.P. Morgan Chase, Chevron, General Electric, Berkshire Hathaway, and Wells Fargo & Co. The fund’s expenses are just 0.10% of its assets.

If you want exposure to the S&P 500 Index, the SPDR S&P 500 ETF is a buy.

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Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

BRIGGS & STRATTON CORP. $19 (www.briggsandstratton.com) reported that its sales fell 7.9% in its fiscal 2015 first quarter, which ended September 30, 2014, to $292.6 million from $317.3 million a year earlier. Cool spring and summer weather hurt sales of lawn mowers and garden equipment. That means manufacturers still had a lot of inventory left over, so they ordered fewer of Briggs’ lawn mower engines. However, savings from a restructuring plan narrowed the company’s loss to $0.21 a share from $0.35 a year earlier. Hold. UNITED TECHNOLOGIES CORP. $113 (www.utc.com) expects its revenue to rise from a projected $65 billion in 2014 to between $66 billion and $67 billion in 2015. Strong demand for its building products and Sikorsky helicopters will offset slower growth at its Pratt & Whitney jet-engine division. Earnings will likely gain 4.4%, from $6.80 in 2014 to $7.10 in 2015. The stock trades at 15.9 times the 2015 estimate. Buy.

Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

United Technologies fell slightly in late November, after Louis Chenevert, its chief executive for the past six years, retired suddenly. However, new CEO Gregory Hayes (who is also a former vice-president) will likely continue Chenevert’s focus on the company’s main aerospace and construction divisions.

These businesses operate in cyclical markets, but their outlook is bright. Airlines are replacing their aging fleets, increasing demand for jet engines and other parts, while developing countries’ ongoing urbanization fuels building-product sales.

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United Technologies fell slightly in late November, after Louis Chenevert, its chief executive for the past six years, retired suddenly. However, new CEO Gregory Hayes (who is also a former vicepresident) will likely continue Chenevert’s focus on the company’s main aerospace and construction divisions. These businesses operate in cyclical markets, but their outlook is bright. Airlines are replacing their aging fleets, increasing demand for jet engines and other parts, while developing countries’ongoing urbanization fuels building-product sales. United Technologies also has another advantage many competitors can’t match: because of its many subsidiaries, it can offer construction clients an integrated package of building products, such as elevators, heating and fire-control systems....

UNITED TECHNOLOGIES CORP. $110 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 911.7 million; Market cap: $100.3 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.utc.com) has five main divisions: Climate, Controls & Security (26% of 2013 revenue, 27% of earnings) makes heating and air conditioning equipment under the Carrier brand, as well as burglar alarms and fire-safety products; Pratt & Whitney (23%, 19%) manufactures aircraft engines; Aerospace Systems (21%, 21%) makes engine control systems and other parts for aircraft; Otis (20%, 27%) makes elevators; and Sikorsky (10%, 6%) makes helicopters.

The company’s revenue rose 10.0%, from $52.9 billion in 2009 to $58.2 billion in 2011.

In 2012, it bought North Carolina-based Goodrich Corp., which makes aircraft parts (including landing gear, wheels and brakes) and maintains and fixes planes. United Technologies paid $18.3 billion, including assuming $1.9 billion of Goodrich’s debt. However, it also sold some less important businesses, so its revenue fell 0.8%, to $57.7 billion, in 2012.

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APPLE INC., $105.22, Nasdaq symbol AAPL, hit a new all-time high of $105.49 (split-adjusted) this week on strong demand for the latest version of its iPhone smartphone. In its fiscal 2014 fourth quarter, which ended September 27, 2014, earnings rose 12.7%, to $8.5 billion from $7.5 billion a year earlier. The company spent $45.0 billion on share buybacks in the past year. As a result, earnings per share jumped 20.3%, to $1.42 from $1.18. That beat the consensus estimate of $1.31. Sales in the quarter gained 12.4%, to $42.1 billion from $37.5 billion. That also beat the consensus forecast of $39.9 billion....

SPDR S&P 500 ETF $194.35 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. companies that are chosen based on their market cap, liquidity and industry group.

The index’s highest-weighted stocks are Apple, ExxonMobil, Microsoft, Procter & Gamble, Johnson & Johnson, J.P. Morgan Chase, Chevron, General Electric, Berkshire Hathaway, Wells Fargo, IBM, Pfizer, Verizon and AT&T. The fund’s expenses are just 0.10% of its assets.

If you want exposure to the S&P 500 Index, the SPDR S&P 500 ETF is a buy.

...

Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day, at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $169.58 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average.

The SPDR Dow Jones ETF’s top holdings are Visa, IBM, Goldman Sachs Group, ExxonMobil, Chevron, 3M, McDonald’s, Caterpillar, United Technologies and Boeing. The fund’s expenses are about 0.17% of its assets.

SPDR Dow Jones ETF is a buy.

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