The sudden departure of United Technologies CEO Louis Chenevert had investors and analysts scratching their heads on Monday and wondering whether it created an opportunity to buy the stock.
From a near-term perspective, the stock isn't down "too substantially" but investors should be concerned about UTX's long-term underperformance, said Mark Newton, chief technical analyst at Greywolf Execution Partners.
"UTX has been a consistent laggard in the aerospace and defense sector, really over the last couple years," he said in an interview with CNBC's "Closing Bell."
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The company, maker of Pratt & Whitney jet engines and Otis elevators, didn't give a reason for Chenevert's departure. It named Chief Financial Officer Gregory Hayes as his successor.
While Newton called Hayes a "worthy successor," he isn't advocating buying the stock at this point.
"I think there are better companies to take a look at in the aerospace and defense sector," he said, noting that UTX's exposure to China could be "a little bit troublesome given the ongoing signs of slowing down."
"Until we start to see signs of relative strength starting to pick up in this stock versus its peers, I would avoid it."
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—Reuters contributed to this report.