Is Otis Worldwide Stock Underperforming the Nasdaq?
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With a market cap of $37.6 billion, Otis Worldwide Corporation (OTIS) is a global leader in the manufacturing, installation, and servicing of elevators and escalators. Operating through its New Equipment and Service segments, Otis provides innovative mobility solutions, including its Gen360 and Gen2 systems for residential, commercial, and infrastructure projects.
Companies worth more than $10 billion are generally labeled as “large-cap” stocks and Otis Worldwide fits this criterion perfectly. With a presence in over 1,400 offices worldwide and a service portfolio exceeding 2 million units, the company serves a diverse customer base across the United States, China, and internationally.
Despite this, shares of the Farmington, Connecticut-based company have declined 11.1% from its 52-week high of $106.83. OTIS stock has decreased 6.1% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 13% rise over the same time frame.
In the longer term, shares of Otis Worldwide have declined 1.6% over the past 52 weeks, underperforming NASX’s 13.6% return over the same time frame. However, OTIS stock is up 2.6% on a YTD basis, slightly exceeding NASX’s over 2% gain.
The stock has been trading below its 50-day moving average since early April.
Despite Otis reporting a better-than-expected Q1 2025 adjusted EPS of $0.92, its shares fell 6.7% on Apr. 23 due to a 2.5% decline in net sales to $3.4 billion, which missed the consensus estimate. Investor concerns were further fueled by muted new equipment demand driven by China's weak property market and the expected $45 million to $75 million tariff impact on operating profit due to U.S.-China trade tensions. However, Otis raised its full-year revenue forecast to $14.6 billion - $14.8 billion.
Otis Worldwide has significantly underperformed its rival GE Vernova Inc. (GEV). GEV stock has surged 180.4% over the past 52 weeks and 43.4% on a YTD basis.
Due to the stock’s weak performance, analysts remain cautious on OTIS. The stock has a consensus rating of “Hold” from 11 analysts in coverage, and as of writing, OTIS is trading below the mean price target of $100.64.
On the date of publication, Sohini Mondal 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.