Is Otis Worldwide Corporation (NYSE:OTIS) Worth a Closer Look at Its Price of US$86.38?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 31 2025
0mins
Should l Buy OTIS?
Source: Yahoo Finance
Otis Worldwide Corporation Stock Analysis
- Recent Price Movements: Otis Worldwide's stock has experienced significant fluctuations, peaking at US$101 and dropping to a low of US$84.93. Currently, it trades at US$86.38, raising questions about its valuation.
- Intrinsic Value Assessment: The intrinsic value of Otis Worldwide is estimated at US$110.28, indicating that the stock is undervalued at its current price, presenting a potential buying opportunity for investors.
Future Growth Prospects
- Earnings Growth Forecast: Analysts project a 29% increase in Otis Worldwide's earnings over the next few years, suggesting a strong growth outlook that could enhance cash flows and share value.
- Investment Timing: Given the current undervaluation and positive future outlook, it may be an opportune time for both existing shareholders to increase their holdings and for potential investors to consider entering the market.
Considerations for Investors
- Management and Risks: Investors are advised to evaluate the management team's track record and be aware of two identified warning signs that could impact the stock's performance.
- Alternative Investment Options: For those not interested in Otis Worldwide, there are over 50 other stocks with high growth potential available for consideration.
Disclaimer
- General Information: The analysis provided is based on historical data and analyst forecasts, and does not constitute financial advice. It is important for investors to consider their individual financial situations and objectives before making investment decisions.
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Analyst Views on OTIS
Wall Street analysts forecast OTIS stock price to rise
7 Analyst Rating
3 Buy
3 Hold
1 Sell
Moderate Buy
Current: 91.750
Low
92.00
Averages
100.67
High
111.00
Current: 91.750
Low
92.00
Averages
100.67
High
111.00
About OTIS
Otis Worldwide Corporation is an elevator and escalator manufacturing, installation and service company. The Company’s segments include New Equipment and Service. The New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, and escalators and moving walkways for residential, commercial and infrastructure projects. Its elevator and escalator solutions include Gen2, Gen3, Gen360 and SkyRise. Through its Service segment, it performs maintenance and repair services, and modernization services to upgrade elevators and escalators. Through its network of service sales personnel, it sells its services directly to customers in all significant elevator and escalator verticals around the world. It serves customers in over 200 countries and territories around the world. The SkyRise advanced elevator platform combines cutting-edge technologies and precision engineering to deliver solutions for residential, commercial and mixed-use skyscrapers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Critique of Current Policies: In a recent interview, Warsh criticized Powell for adhering to outdated economic models, arguing that current economic growth should not be viewed as inflationary but rather as the beginning of a structural decline in prices.
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- Record Date for Shareholders: The dividend will be paid to shareholders of record as of February 13, 2026, ensuring that investors holding shares by this date can benefit from the payout, thereby enhancing investor confidence.
- Global Business Scale: Otis moves 2.5 billion people daily and maintains approximately 2.5 million customer units, underscoring its leadership position in the elevator and escalator industry and further solidifying its market share.
- Employee Strength: The company employs 72,000 people globally, including 45,000 field professionals, demonstrating its robust service capabilities and responsiveness to customer needs, supporting operations in over 200 countries and territories.
See More
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- Fed Policy Unchanged: The FOMC maintained the interest rate at 3.50%-3.75% as expected, with Chair Powell indicating strong economic performance without signaling imminent rate cuts, keeping market focus on future policy directions.
- Dollar and Gold Fluctuations: The dollar index rebounded after hitting a nearly four-year low, while President Trump's comments on dollar weakness pushed gold prices up over 3% to a new all-time high, reflecting increased demand for safe-haven assets.
- Economic Data Expectations: Initial jobless claims are expected to rise by 5,000 to 205,000 this week, and Q3 nonfarm productivity is anticipated to remain at 4.9%, indicating ongoing economic growth and potential market volatility.
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- Interest Rate Policy Impact: The Fed's choice to maintain the benchmark rate between 3.5% and 3.75% ends a series of three consecutive rate cuts aimed at protecting the labor market, which may exert short-term negative pressure on the stock market.
- Market Focus: This week, the market will closely monitor new tariff news and the prospects for a continued resolution to fund the government, with initial jobless claims expected to rise by 5,000 to 205,000, highlighting the fragility of economic recovery.
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