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Farmington, Connecticut-based Otis Worldwide Corporation (OTIS) manufactures, installs, and services building systems. Valued at $37.9 billion by market cap, the company offers elevators, escalators, and other moving products.
Shares of elevator giant have underperformed the broader market over the past year. OTIS has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.5%. However, in 2025, OTIS stock is up 5.7%, surpassing the SPX’s marginal rise on a YTD basis.
Narrowing the focus, OTIS’ underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 12.9% over the past year. Moreover, the ETF’s 7.9% returns on a YTD basis outshine the stock’s gains over the same time frame.
On Apr. 23, OTIS shares closed down more than 6% after reporting its Q1 results. Its adjusted EPS of $0.92 exceeded Wall Street expectations of $0.91. The company’s revenue was $3.35 billion, missing Wall Street forecasts of $3.41 billion. OTIS expects full-year adjusted EPS in the range of $4 to $4.10, and expects revenue in the range of $14.6 billion to $14.8 billion.
For the current fiscal year, ending in December, analysts expect OTIS’ EPS to grow 5.5% to $4.04 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 11 analysts covering OTIS stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and two “Strong Sells.”
The configuration is consistent over the past three months.
On Apr. 28, Morgan Stanley (MS) kept an “Equal Weight” rating on OTIS and lowered the price target to $97.
The mean price target of $99 represents a 1.2% premium to OTIS’ current price levels. The Street-high price target of $113 suggests an upside potential of 15.5%.
