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With the market's recently volatility, many investors are more focused on capital preservation than capital appreciation. Therefore, many times they flock to mega caps-- also known as blue chip stocks-- since they have proven themselves through many business cycles, and typically have a much more secure revenue base. However, the five well-known companies below seem to be under-appreciated by investors, and now looks to be the right time to buy. Moreover, they have large institutional ownership which tends to provide price stability and less volatility, as their time horizon is much longer than the average investor or hedge fund.


United Technologies (UTX) provides technology products and services to the building systems and aerospace industries worldwide. The company has a trailing P/E under 15x, forward 13x P/E, 1.2x PEG and P/S, FCF in excess of $5B this past year, and a nice 2.4% dividend yield. UTX trades at a very low 34% payout ratio as well, so it's very likely to see continued future dividend increases and a nice buy here. As of last quarter UTX had a very strong 80.9% of all shares outstanding held by institutions.
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