OTIS Stock Analysis — Otis Worldwide
Sector: Industrials
AI Verdict
Otis trades at a discount to the sector on forward earnings with above-average growth, so the numbers look cheap for the stability of its service moat.
Competitive Moat
Otis dominates the global elevator and escalator market with a massive installed base, giving it a recurring revenue moat through long-term service contracts. Its scale and service network make it hard for new entrants to compete on reliability and reach.
Summary
Otis is notable right now for trading at 16.4x next year's earnings while earnings are expected to grow 15.8%.
Where It Stands
Shares are up with a 61.1 RSI (neutral-high), trade at 16.4x forward earnings versus the industrials median of 20x, and have delivered 5.2% revenue growth.
Key Metrics
- RSI: 61.1 — Near Overbought
- Trailing P/E: 19.0x
- Forward P/E: 16.4x
- PEG Ratio: 1.31
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Dividend Yield: 0.02%
- 52-Week High: $94.56
- 52-Week Low: $69.16
Analyst Consensus
12 Buy · 10 Hold · 0 Sell (22 analysts)
Bull Case
Forward P/E of 16.4x with 15.8% expected EPS growth is cheap for a company with a sticky service model and a 1.31 PEG ratio that looks fair for the growth.
Bear Case
If the P/E reverts down to the sector median of 16.4x from the trailing 19.0x, that's already priced in, so any disappointment on 15.8% EPS growth could trigger a pullback, especially with RSI at 61.1.
Catalyst to Watch
Watch for the next earnings call—any change in the 15.8% EPS growth outlook will move the stock quickly given the current valuation.