Johnson Controls: Resilient Performance Amidst Market Fluctuations
Cork, Ireland-based Johnson Controls International plc (JCI) engineers, manufactures, commissions, and retrofits building products and systems. With a market cap of almost $52.9 billion, the company offers a diverse range of products and technologies for heating, ventilation, air conditioning (HVAC), fire protection, security, and energy management.
JCI is classified as a “large-cap stock,” fitting the criteria with its valuation surpassing the $10 billion mark. This status highlights its size and influence within the building products and equipment industry. The company excels in smart building solutions, energy efficiency, and sustainability-driven innovations. It enjoys a strong global footprint and a varied customer base that spans commercial, industrial, and residential markets, benefiting from long-term contracts and recurring service revenue.
This building products and technology solutions provider is currently trading 14.5% below its 52-week high of $91.14, which it reached on February 18. Additionally, JCI has declined 5.9% over the last three months, lagging behind the Industrial Select Sector SPDR Fund’s (XLI) 4.9% loss in the same period.
Looking at year-to-date figures, shares of Johnson Controls are down 1.3%, contrasting with XLI’s slight gain during the same timeframe. However, in the longer view, JCI has rallied 26.2% over the past 52 weeks, significantly outpacing XLI’s 8.1% increase.
In March, JCI fell below its 50-day moving average yet consistently maintained its position above the 200-day moving average throughout the past year, indicating a mixed but resilient trend.
On February 10, the stock gained 2.1% after UBS upgraded it from ‘Neutral’ to ‘Buy’ and raised the price target to $103. This upgrade closely followed the appointment of Joakim Weidemanis as the new chief executive, which reflects increased confidence in his leadership and the company’s growth prospects.
The positive momentum continued on February 5, when the stock skyrocketed 11.3% in response to a strong Q1 earnings release that exceeded expectations. JCI reported revenue of $5.4 billion, a 4.2% increase from the previous year, surpassing Wall Street estimates by 1.9%. The company’s adjusted EPS improved by a substantial 39.1% year-over-year to $0.64, beating the forecasted figure by 8.5%. Robust order growth and significant margin expansion across all business segments contributed to these results.
Furthermore, JCI raised its full-year 2025 guidance for both margins and adjusted EPS, citing strong operational performance and strategic initiatives. It now expects adjusted EPS to be between $3.50 and $3.60.
JCI has outperformed its competitor, Carrier Global Corporation (CARR), which has seen a 15.5% gain over the past 52 weeks, but a 1.8% decline year-to-date.
Despite Johnson Controls’ recent underperformance relative to the broader sector, analysts maintain a moderately optimistic outlook. The stock holds a consensus rating of “Moderate Buy” from 19 analysts, with a mean price target of $95, suggesting a potential 21.9% upside from current levels.
On the date of publication, Neharika Jain 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.
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