- Johnson Controls (JCI) hit a new 52-week high on July 28.
- JCI has an 80% technical “Buy” signal via Barchart.
- Shares are trading above key moving averages and are up nearly 57% over the past year.
- Fundamentals are solid, with projected revenue and earnings growth, but JCI’s valuation is high, and some analysts rate it a “Hold.”
Today’s Featured Stock
Valued at $73.4 billion, Johnson Controls International (JCI) is a diversified technology company and a multi-industry leader. The company’s operations include creating intelligent buildings, providing efficient energy solutions, and the integration of smart city infrastructure. Johnson Controls provides building systems, including HVAC controls and security and safety products.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. JCI checks those boxes.
I selected this stock on Monday, July 28, for inclusion in today’s Chart of the Day. The Trend Seeker signaled a buy on May 1, and the stock had gained 27.8% since then. However, on Tuesday, July 29, Trend Seeker signaled a “hold.”
JCI Price vs. Daily Moving Averages:
Barchart Technical Indicators for Johnson Controls:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Johnson Controls shares hit a new 52-week high on July 28, touching $112.63 in intraday trading.
- JCI has an 80% technical “Buy” signal.
- The stock recently traded at $105.72, above its 50-day moving average of $105.61.
- Johnson Controls has a Weighted Alpha of +57.01.
- The stock has gained 56% over the past year.
- Johnson Controls is trading above its 20, 50 and 100-day moving averages.
- The stock made 13 new highs and gained 2.55% in the last month.
- Relative Strength Index is at 46.36%.
- The technical support level is $110.81.
Don’t Forget the Fundamentals:
- $73.4 billion market capitalization.
- Trailing price-earnings ratio of 28.8x.
- 1.38% dividend yield.
- Revenue is projected to grow 5.2% next year.
- Earnings are estimated to increase 17.96% next year.
Analyst and Investor Sentiment on Johnson Controls:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish, but some major advisory sites are split.
- The Wall Street analysts tracked by Barchart issued 11 “Strong Buy” and nine “Hold” opinions on the stock.
- CFRA’s Market Scope rates the stock a “Hold.”
- Morningstar thinks the stock is 26% overvalued.
- 46,500 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Johnson Controls currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project double-digit growth in earnings.
I caution that JCI is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten 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.
