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Farmington, Connecticut-based Otis Worldwide Corporation (OTIS) manufactures, installs, and services building systems. Valued at $35 billion by market cap, the company offers elevators, escalators, and other moving products.
Shares of elevator giant have underperformed the broader market over the past year. OTIS has declined 6.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.4%. However, in 2026, OTIS stock is up 3.1%, surpassing the SPX’s 1.4% 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 25.5% over the past year. Moreover, the ETF’s 12.1% returns on a YTD basis outshine the stock’s single-digit gains over the same time frame.
OTIS underperformed due to weak new equipment sales, especially in China and the Americas, and slower service repair growth. Looking ahead, the company expects new equipment sales to stabilise or dip. China remains tough, but they're focusing on high-value service contracts.
On Jan. 28, OTIS shares closed down more than 2% after reporting its Q4 results. Its adjusted EPS of $1.03 met Wall Street expectations. The company’s revenue was $3.8 billion, missing Wall Street forecasts of $3.9 billion. OTIS expects full-year revenue in the range of $15 billion to $15.3 billion.
For the current fiscal year, ending in December, analysts expect OTIS’ EPS to grow 6.9% to $4.33 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 13 analysts covering OTIS stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with five analysts suggesting a “Strong Buy.”
On Feb. 5, Joe O’Dea from Wells Fargo & Company (WFC) maintained a “Hold” rating on OTIS with a price target of $92, implying a potential upside of 2.2% from current levels.
The mean price target of $100.83 represents a 12% premium to OTIS’ current price levels. The Street-high price target of $112 suggests an upside potential of 24.4%.
On the date of publication, Neha Panjwani 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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