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Based in Cork, Ireland, Johnson Controls International plc (JCI) is a global leader in building technologies and solutions. With a market cap of $46.55 billion, JCI has transformed the landscape of smart and sustainable building management. Renowned for its innovative products and services, the company offers a comprehensive range of solutions, including HVAC, security, fire protection, and energy management systems.
Companies valued at $10 billion or more are generally considered "large-caps," and Johnson Controls fits this criterion perfectly, signifying its substantial size, stability, and influence in the building technology and energy solutions industry.
JCI shares are trading 8.1% below their 52-week high of $74.23, which they hit on May 24. However, JCI has gained 6.3% over the past three months, outperforming the S&P 500 Index’s ($SPX) 4.8% returns over the same time frame.
Longer term, JCI is up 18.3% on a YTD basis, and the shares have gained 3.8% over the past 52 weeks. In comparison, the S&P 500 has gained 14.8% in 2024 and 24.7% over the past year.
To confirm the bullish price trend, JCI has been trading above its 200-day moving average since late February and 50-day moving average since early May.
JCI reported its Q2 results on May 1. The company's adjusted earnings were $0.78 per share, surpassing Wall Street expectations of $0.75 per share. However, the company’s revenue of $6.7 billion fell short of the forecasted $6.75 billion. For the upcoming quarter ending in June, JCI projects earnings per share to range between $1.05 and $1.10 and anticipates full-year earnings to be between $3.60 and $3.75 per share.
Shares of JCI rose as much as 5.8% on May 20, driven by reports that prominent activist investor Elliott Investment Management has taken a significant position in the company, worth over $1 billion.
Highlighting the contrast in performance, JCI's competitor, Honeywell International Inc. (HON), has underperformed JCI and SPX, with a 2.1% gain on a YTD basis.
Given JCI's recent outperformance compared to SPX, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $67.35 indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
