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Farmington, Connecticut-based Otis Worldwide Corporation (OTIS) engages in manufacturing, installation, and servicing of elevators and escalators in the US, China and internationally. With a market cap of $38.4 billion, Otis Worldwide operates through New Equipment and Service segments.
The industrial sector giant has notably underperformed the broader market over the past year. OTIS stock has gained 8.8% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 23.5% surge during the same time frame. However, in 2025, OTIS has soared 5.8%, outpacing SPX’s 4% gains on a YTD basis.
Zooming in further, OTIS has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 18.9% gains over the past year but outperformed XLI’s 4.7% returns in 2025.
Otis Worldwide’s stock prices dipped 1.3% after the release of its mixed Q4 results on Jan. 29. Driven by the notable surge in organic service revenues, the company’s overall net sales for the quarter increased 1.5% year-over-year to $3.7 billion, exceeding the Street’s expectations by 72 basis points. Although the company experienced a slight improvement in profit margins and its adjusted net income to shareholders increased 5.1% year-over-year to $374 million, its adjusted EPS of $0.93, missed the consensus estimates by 2.1%.
For the current fiscal 2025, ending in December, analysts expect OTIS to deliver a 5.2% year-over-year growth in EPS to $4.03. However, the company has a mixed earnings surprise history. While OTIS surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the estimates on two other occasions.
Among the 10 analysts covering the OTIS stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy,” one “Moderate Buy,” six “Hold,” and two “Strong Sell” ratings.
This configuration is notably more bearish compared to three months ago when two analysts gave “Strong Buy” recommendations and none of the analysts advocated a “Strong Sell” rating.
On Jan. 30, J.P. Morgan (JPM) analyst Stephen Tusa reiterated a “Hold” rating on OTIS, while setting the price target to $105.
OTIS’ mean price target of $101.40 represents a modest 3.4% premium to current price levels, while its street-high target of $113 indicates a 15.3% upside potential.
