Daily Stock Opinions and Ratings

Opinions

Jim Cramer - Mad MoneyOtis Worldwide Corp.OTISBUYApr 26, 2021

Delivered a blow-out quarter today, with 18% growth across all geographies based on a global construction boom. Shares leapt 7% today.

Jim Cramer - Mad Money

Unknown

Unlock Rating

$76.27

Stock price when the opinion was issued

$73.27

As of Jun 18, 2026. Market Open.

machinery

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

BUY

Kone vs. Otis

Look at revenues and find out who's building office towers. Look at recurring revenues, because elevators often break down and need constant service. Kone is more European while Otis is global. If the USD falls, Otis will improve better. It comes down to the USD.

TOP PICK

#1 in new equipment, with 19% market share. Global, over 70% of operations outside NA. Service side is very high margin. Package deal of elevator + service contract is about 60%, increasing over time. Aging elevators. Long-term, attractive growth. Yield is 1.6%.

(Analysts’ price target is $90.33)

BUY

The worst sector is commercial real estate and yet Otis, which supplied these building elevators, is hitting 52-week highs. A lot of credit goes to the CEO.

BUY

Today, they reported a solid quarter: a modest top and bottom line beat, and strong and surprising organic growth. Shares have already rallied 32% from last fall's bottom, it popped another 2.8% today to make a new 52-week high. Wall Street remains bearish on non-residential construction, which benefits Otis.

PAST TOP PICK

(A Top Pick Dec 14/21, Down 6%) Stock has held up well during recession and market sell off. Still owns stock and will continue to hold. Oligopoly in elevator business. Slowdown in China tough on business. Half of revenues come new equipment volume.

Premium content

It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Otis has beaten all its last four quarters with hits most recent EPS of $2.91 being 20.4% higher than a year ago. Its PE of 25.1x is in-line with the heavy electrical equipment industry as is its dividend of 1.59%, which is safe at a 32.67% payout ratio. It cash flow is healthy at 19x.

BUY

Weighed by supply chain woes and rising costs as well as the flagging Chinese real estate market, but this morning they delivered a resilient report with much-stronger earnings margins, though slightly disappointing sales. Overall, numbers were better than expected, so shares rose today in a tough session. The bulk of their business comes from maintenance and service.

PARTIAL BUY

She's likes the elevator industry; it's an oligopoly. The servicing side of the business has high, recurring margins. This would cushion the company if we enter weaker economic times. Last year saw growth for Otis in China. Also, elevators in Europe are aging, where Otis has a big slice of the market. Another tailwind is workers returning to offices and those buildings need elevators. Also, Otis is making their elevators go digital which helps servicing. Otis shares have pulled back with the market, but she would slowly add more shares.

COMMENT

They report Monday. We need to hear if there's a slowdown in business for them in China and how the US is holding up. The CEO's numbers have been super.

TOP PICK

Number one in elevators, a business she likes. Their services and equipment divisions are thriving. Services amounts to 55% of revenues but 80% of profits, high-margin with long-term contracts. Renewals are high. Will benefit from the recovery and building construction. A third of its installed base is 20 years old so those elevators will need servicing or upgrades. Trades at a discount to European peers. Pays an okay dividend. (Analysts’ price target is $92.31)

PAST TOP PICK

(A Top Pick Nov 12/20, Up 30%) The service component is much more profitable than the OEM portion, accounting for 80% of revenues, and so less cyclical. Problems with Chinese real estate has caused the pullback. The exposure in China is reasonable. Global company. Added client money on the pullback.

PAST TOP PICK

(A Top Pick Oct 15/20, Up 29%) Best in class company in an oligopolistic space. They do elevators. Has hit a high of $91. About 20% exposure to China. This same story has happened to one of their competitor. Service side business does go up as well.

PAST TOP PICK

(A Top Pick May 13/20, Up 66%) She likes the elevator space. The service side is very profitable. Their increasing their presence in China. After 25-30 years, elevators need to be refurbished, and we'll be seeing that in the UK especially. As offices and malls reopen, those elevators will need servicing.

PAST TOP PICK

(A Top Pick May 13/20, Up 49%) Almost an oligopoly. Very attractive business model. Profitable, recurring revenues. A much more defensive cyclical. Europe and China are growth areas. Reopening will increase service calls. Moving to digitization. Wait for a pullback to commit new money.

Most Recent Experts

Stockchase Insights

5i Research

Brian Acker, CA

Acker Finley Inc.

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

David Burrows

Barometer Capital Management