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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Otis Worldwide Corp. is a part of a global oligopoly with a significant share of the market. Despite recent issues in China affecting demand, experts are optimistic about its rebound potential in the medium term and its strong position worldwide. The company has reported mixed quarters with cautionary comments on China, but some analysts view the current situation as a buying opportunity. Overall, Otis is seen as a strong player in the industry, with potential for growth.

Consensus
Bullish
Valuation
Fair Value
Similar
Schindler, SCHP-N
TOP PICK

Part of a global oligopoly, with ~20% share of the global market. Very large installed base, and margin for servicing elevators is about 3x that of selling the elevators. Recent issues from demand in China, should rebound medium term. Still, it's in a great position worldwide. 24x PE, attractive. Yield is 1.5%.

(Analysts’ price target is $103.69)
machinery
BUY ON WEAKNESS

They reported a small top and bottom line miss, and cut their full-year forecast due to weakness in China. Shares ran up before the quarter, and sold off 3% after so is only -6.5%  from last month's all-time highs. A winner as central banks cut rates around the world.

machinery
BUY ON WEAKNESS

They reported a mixed quarter today: light revenues, earnings beat a little and raised their full-year forecast. But shares slipped maybe on cautionary comments on China and lowered full-year equipment sales outlook. He's bullish. Now is a buying opportunity.

machinery
BUY ON WEAKNESS

Today they reported a solid quarter and in-line guidance. Shares rallied at first, but closed lower with the rest of the market after Jay Powell's comments. That sell-off was a mistake.

machinery
BUY
Kone vs. Otis

Look at revenues and find out who's building office towers. Look at recurring revenues, because elevators often break down and need constant service. Kone is more European while Otis is global. If the USD falls, Otis will improve better. It comes down to the USD.

machinery
TOP PICK

#1 in new equipment, with 19% market share. Global, over 70% of operations outside NA. Service side is very high margin. Package deal of elevator + service contract is about 60%, increasing over time. Aging elevators. Long-term, attractive growth. Yield is 1.6%.

(Analysts’ price target is $90.33)
machinery
BUY

The worst sector is commercial real estate and yet Otis, which supplied these building elevators, is hitting 52-week highs. A lot of credit goes to the CEO.

machinery
BUY

Today, they reported a solid quarter: a modest top and bottom line beat, and strong and surprising organic growth. Shares have already rallied 32% from last fall's bottom, it popped another 2.8% today to make a new 52-week high. Wall Street remains bearish on non-residential construction, which benefits Otis.

machinery
PAST TOP PICK
(A Top Pick Dec 14/21, Down 6%) Stock has held up well during recession and market sell off. Still owns stock and will continue to hold. Oligopoly in elevator business. Slowdown in China tough on business. Half of revenues come new equipment volume.
machinery
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It's a Monthly Gems opinion which is available only for Premium members

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Otis has beaten all its last four quarters with hits most recent EPS of $2.91 being 20.4% higher than a year ago. Its PE of 25.1x is in-line with the heavy electrical equipment industry as is its dividend of 1.59%, which is safe at a 32.67% payout ratio. It cash flow is healthy at 19x.

machinery
BUY
Weighed by supply chain woes and rising costs as well as the flagging Chinese real estate market, but this morning they delivered a resilient report with much-stronger earnings margins, though slightly disappointing sales. Overall, numbers were better than expected, so shares rose today in a tough session. The bulk of their business comes from maintenance and service.
machinery
PARTIAL BUY

She's likes the elevator industry; it's an oligopoly. The servicing side of the business has high, recurring margins. This would cushion the company if we enter weaker economic times. Last year saw growth for Otis in China. Also, elevators in Europe are aging, where Otis has a big slice of the market. Another tailwind is workers returning to offices and those buildings need elevators. Also, Otis is making their elevators go digital which helps servicing. Otis shares have pulled back with the market, but she would slowly add more shares.

machinery
COMMENT
They report Monday. We need to hear if there's a slowdown in business for them in China and how the US is holding up. The CEO's numbers have been super.
machinery
TOP PICK
Number one in elevators, a business she likes. Their services and equipment divisions are thriving. Services amounts to 55% of revenues but 80% of profits, high-margin with long-term contracts. Renewals are high. Will benefit from the recovery and building construction. A third of its installed base is 20 years old so those elevators will need servicing or upgrades. Trades at a discount to European peers. Pays an okay dividend. (Analysts’ price target is $92.31)
machinery
PAST TOP PICK
(A Top Pick Nov 12/20, Up 30%) The service component is much more profitable than the OEM portion, accounting for 80% of revenues, and so less cyclical. Problems with Chinese real estate has caused the pullback. The exposure in China is reasonable. Global company. Added client money on the pullback.
machinery
Showing 1 to 15 of 27 entries

Otis Worldwide Corp.(OTIS-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for Otis Worldwide Corp. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Otis Worldwide Corp.(OTIS-N) Frequently Asked Questions

What is Otis Worldwide Corp. stock symbol?

Otis Worldwide Corp. is a American stock, trading under the symbol OTIS-N on the New York Stock Exchange (OTIS). It is usually referred to as NYSE:OTIS or OTIS-N

Is Otis Worldwide Corp. a buy or a sell?

In the last year, 4 stock analysts published opinions about OTIS-N. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Otis Worldwide Corp..

Is Otis Worldwide Corp. a good investment or a top pick?

Otis Worldwide Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Otis Worldwide Corp..

Why is Otis Worldwide Corp. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Otis Worldwide Corp. worth watching?

4 stock analysts on Stockchase covered Otis Worldwide Corp. In the last year. It is a trending stock that is worth watching.

What is Otis Worldwide Corp. stock price?

On 2024-12-13, Otis Worldwide Corp. (OTIS-N) stock closed at a price of $97.79.