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United Technologies Plans to Acquire Predikto Analytics Firm

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United Technologies Corporation recently announced that it set to acquire Predikto Inc., for an undisclosed amount, in a bid to strengthen its data analytics and digital capabilities.

Atlanta-based analytics company Predikto develops software that automates tasks involved in estimating industrial equipment breakdown, including algorithm development and complex data integration. These solutions aid in predicting industrial machinery and jet-engine failures. Such predictive-maintenance service helps companies fix unplanned machinery downtime, and avoid significant operational and cost disruptions.

United Technologies’ business segment — UTC Climate, Controls & Security (‘UTC’) —makes businesses more analytics based with its innovative technologies. The company expects that stronger sales of its new digital tools and after-market services will help boost its profitability, going forward.

Post the aforementioned acquisition, Predikto’s tools will be incorporated within UTC’s existing services and products. Notably, these tools will be utilized by the segment’s separate business units, such as elevator manufacturer Otis, jet-engine producer Pratt & Whitney, and furnace and air conditioner maker Carrier. Additionally, Predikto’s software will simplify and accelerate UTC’s existing data-integration process.

Prior to this buyout deal, UTC started working with Predikto in the beginning of 2018 on a Pratt & Whitney-based predictive maintenance project.

Price Performance

Over the past month, United Technologies’ shares have rallied 4.4%, outperforming 0.6% growth recorded by the industry.

Zacks Rank & Key Picks

United Technologies currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are listed below:

Federal Signal Corporation (FSS - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company pulled off an average positive earnings surprise of 22.48% over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carlisle Companies Incorporated (CSL - Free Report) holds a Zacks Rank #2 (Buy). The company generated an average positive earnings surprise of 12.85% over the trailing four quarters.

Crane Company (CR - Free Report) also carries a Zacks Rank of 2. The company came up with an average positive earnings surprise of 3.03% during the same time frame.

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