Otis Worldwide Corporation: Analyzing Recent Performance and Stock Outlook

Based in Farmington, Connecticut, Otis Worldwide Corporation (OTIS) specializes in the manufacturing, installation, and servicing of elevators and escalators across the U.S., China, and globally. With a market capitalization of $40.1 billion, the company operates through its New Equipment and Service segments, positioning itself firmly as a large-cap stock—companies valued at $10 billion or more.

Recent Stock Performance

Otis reached a record high of $106.83 on March 10, but as of now, it is trading 6.5% below that peak. Over the past three months, the stock has gained 1.7%, which is particularly notable given the S&P 500 Index’s ($SPX) 7.5% decline during the same period.

In a longer view, Otis has improved its position with a 7.8% increase over the last six months, outpacing the SPX, which only gained 6 basis points in that timeframe. However, the past 52 weeks have shown a more mixed result, with Otis only achieving a 2.5% return compared to the SPX’s 8.2% growth.

Technical Indicators

Notably, Otis has traded above its 200-day moving average since mid-February and consistently above its 20-day moving average since mid-January, aside from some fluctuations.

Financial Highlights

After announcing mixed Q4 results on January 29, Otis’s stock fell 1.3%. The company reported a 1.5% year-over-year increase in overall net sales to $3.7 billion, surpassing market projections by 72 basis points. Although profit margins improved, the adjusted earnings per share (EPS) was $0.93, which fell 2.1% short of consensus estimates, impacting market perception.

Over the past six months, Otis has outperformed its competitor KONE Oyj (KNYJY), which gained 6.3%. However, KONE has outpaced Otis with a 23.1% increase over the past year.

Analyst Opinions and Future Outlook

According to the 10 analysts covering OTIS, the consensus rating is a “Hold.” The average price target stands at $101.40, indicating a modest 1.5% premium from current trading levels.

On the date of publication, Aditya Sarawgi held no positions in the securities mentioned in this article. All data provided is for informational purposes only. For further details, please consult the Barchart Disclosure Policy here.

The views expressed here are solely those of the author and may not reflect the views of Nasdaq, Inc.