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Otis Worldwide Corporation (OTIS), headquartered in Farmington, Connecticut, manufactures, installs, and services elevators and escalators. Valued at $38.78 billion by market cap, the company moves nearly 2.3 billion people daily and maintains over 2.3 million customer units worldwide, the industry’s largest portfolio.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and OTIS perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. The company serves customers and passengers in more than 200 countries and territories worldwide.
The leading elevator and escalator company has fallen 4.9% from its 52-week high of $100.84, which it hit on Jun. 6. Shares of OTIS are down 4.3% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 1.6% losses over the same time frame.
Longer term, OTIS shares have risen 10.3% over the past year, and in 2024, the stock is up 7.2%. By contrast, DOWI is up 3.9% on a YTD basis and 15.3% over the past 52 weeks.
The stock has been trading below its 50-day moving average since mid-June but above its 200-day moving average since mid-November 2023.
On Apr. 24, OTIS reported its Q1 results. The company’s net income was $353 million, and its adjusted EPS was $0.88, beating the consensus estimate of $0.87. Its revenue was $3.44 billion during that period. OTIS expects full-year adjusted earnings between $3.83 and $3.90 and revenue between $14.5 billion and $14.8 billion. The stock closed down more than 4% on the day the results were released.
Despite its recent underperformance compared to DOWI, analysts are optimistic about OTIS’ prospects. The stock has a consensus rating of “Moderate Buy” from the nine analysts covering it, and the mean price target of $99.28 is a 3.5% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
