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Otis Worldwide Corporation’s OTIS international presence and demand trends are encouraging for its prospects. Backed by its constant innovation investments and efficient service offerings, the company is gaining market share internationally. This trend can be substantiated by its recent project win in Taiwan.
Recently, Otis Worldwide’s subsidiary, Otis Taiwan, announced a new project in Kaohsiung city, wherein it will supply 50 escalators and 15 Gen2 elevators to extend the Kaohsiung MRT Red Line RLC01. Noting the innovation aspect, OTIS’ Gen2 elevators, with coated steel belts, offer a smoother ride and consume comparatively less energy compared with conventional elevator machines.
The Red Line RLC01 will expand with three stations, enhancing the city’s transportation network. This project is expected to be completed by 2030.
Innovation - OTIS’ Growth Driver
Otis Worldwide has been intently focusing on organic ways of fostering its growth. The primary organic growth strategy involves innovation. The company seems to be invested in seeking innovation opportunities and capitalizing on them for its upcoming prospects.
The company maintained its research and development (R&D) investment, investing $152 million in 2024, with about $53 million in digital and strategic initiatives. At 2024-end, OTIS had 11 R&D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. Notably, the company’s Gen3 and Gen360 digital elevators, successors to the Gen2 family of elevator platforms, enhance the space-saving, energy-efficient design with the connectivity of the Otis ONE IoT (Internet of Things) digital service platform.
Image Source: Zacks Investment Research
Shares of this leading manufacturer of elevators, escalators and moving walkways have gained 12.4% year to date against the Zacks Building Products - Miscellaneous industry’s 6.9% decline. Maintaining the streak, the company expects to continue innovating and expanding the digital ecosystem and suite of digital solutions for both the existing service portfolio customers and new equipment shipments from factories.
OTIS’ Zacks Rank & Key Picks
Otis Worldwide currently carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks from the Construction sector.
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Quanex Building Products Corporation NX currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 115.2%, on average. The stock has lost 24.5% year to date.
The Zacks Consensus Estimate for Quanex’s fiscal 2025 sales and EPS implies an increase of 44% and 16.4%, respectively, from a year ago.
Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has inched down 1.6% year to date.
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