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Valued at a market cap of $47.4 billion, Johnson Controls International plc (JCI) is a global leader in building systems and energy solutions. Based in Cork, Ireland, the company specializes in creating smart, efficient infrastructure for commercial and industrial applications worldwide.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Johnson Controls fits this criterion perfectly. Johnson Controls is distinguished by its long history of innovation in building systems and its ability to deliver comprehensive solutions for both new constructions and retrofitted structures.
However, the building solutions provider has declined 6.7% from its 52-week high of $75.36, achieved in July. Shares of JCI are down marginally over the past three months, which is less pronounced than the broader Nasdaq Composite's ($NASX) dip over the same time frame.
Longer term, JCI is up 22% on a YTD basis, outpacing NASX's 13.4% gains. However, shares of Johnson Controls have risen 22.7% over the past 52 weeks, slightly lagging behind NASX's 23.7% gains over the same time frame.
JCI has been trading above its 200-day moving average since February and has remained mostly above its 50-day moving average during the period despite recent fluctuations.
In 2024, Johnson Controls outperformed due to strong demand for commercial HVAC systems and improved margins, despite declines in specific regions and product segments. Moreover, despite missing revenue forecasts, the stock rose 3.6% on Jul. 31 following its stronger-than-expected Q3 adjusted profit of $1.14 per share. Additionally, the positive market reaction was fueled by the announcement of a CEO succession plan to appoint a new independent director to the board, and ongoing business transformation efforts, including a potential sale of its ADT alarms business.
In comparison, the stock’s rival, John Bean Technologies Corporation (JBT), has underperformed JCI, with a 14.6% decline on a YTD basis and a 19.7% drop over the past 52 weeks.
Despite the stock’s outperformance in 2024, analysts remain cautiously optimistic about its prospects. Among the 20 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $75.16.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
