OTIS Should I Buy
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Otis Worldwide Corp (OTIS) is not a strong buy for a beginner investor with a long-term strategy at this time. While the company has shown positive financial growth in Q4 2025, the recent analyst downgrades, weak guidance, and insider selling outweigh the positive hedge fund activity. Additionally, there are no strong proprietary trading signals or significant positive catalysts to justify an immediate buy.
The MACD is positive and expanding (0.221), indicating bullish momentum, but the RSI is neutral at 66.315. Moving averages are converging, suggesting indecision in the trend. The stock is trading near resistance levels (R1: 92.538), which could limit immediate upside potential.
Hedge funds are significantly increasing their positions, with a 676.26% increase in buying over the last quarter. The company also posted strong financial growth in Q4 2025, with revenue up 3.29%, net income up 10.98%, EPS up 13.10%, and gross margin up 3.60%.
Analysts have downgraded the stock, citing weaker-than-expected guidance and sub-par organic profit growth. Insider selling has increased by 4363.40% over the last month, which is a bearish signal. The stock's valuation is under pressure, and there are no recent news catalysts to drive positive sentiment.
In Q4 2025, Otis Worldwide reported revenue of $3.796 billion (+3.29% YoY), net income of $374 million (+10.98% YoY), EPS of $0.95 (+13.10% YoY), and gross margin of 30.22% (+3.60% YoY). These figures indicate solid financial growth.
Recent analyst actions are bearish. JPMorgan downgraded the stock to Neutral from Overweight, lowering the price target to $98 from $116, citing weaker guidance and missed sales in Q4. Barclays reduced its price target to $90 from $92, maintaining an Underweight rating. Wells Fargo also lowered its price target to $92 from $95, citing valuation compression. These downgrades reflect a lack of confidence in the stock's near-term performance.
