OTIS' Taiwan Subsidiary Acquires Jardine Schindler Lifts in Taiwan

The Taiwan subsidiary of Otis Worldwide Corporation OTIS has acquired Jardine Schindler Lifts Limited (Taiwan) from the Jardine Schindler Group.

This buyout will strengthen the company's position in the Taiwan market with the expanded customer reach and operational capacity of Jardine Schindler Lifts. Otis is optimistic about introducing its products and service offerings, including the recently launched Otis ONE platform and the connected Gen3 elevators, to the new customer base.

This strategic transaction, a milestone for Otis, will enable it to better serve the region and its customers.

Other Growth Initiatives of OTIS

Apart from inorganic growth strategies, Otis also focuses on organic ways of fostering its growth. The primary organic growth strategy is innovation. The company seems to be invested in seeking innovation opportunities and capitalizing on them for its upcoming prospects.

Otis invested $144 million in R&D in 2023. Furthermore, during the first six months of 2024, it invested $75 million in R&D, up 5.6% year over year. The year-over-year increase in R&D investments showcases the company's intent focus on amalgamating recent technologies into its products to stay well-positioned in the market.

As of 2023-end, it had 11 R&D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. These centers are strategically placed to enable the efficient development of engineering solutions. Also, the company's approximately 1,200 global engineers focus intently on digital initiatives, software, design user interfaces and experience.

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Shares of this leading manufacturer of elevators, escalators and moving walkways have gained 2.5% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry's 9.2% growth. Although the company's shares have underperformed the industry, it intends to continue innovating and expanding the digital ecosystem and undergo inorganic initiatives to foster its prospects in the upcoming period.

OTIS' Zacks Rank & Key Picks

Otis Worldwide currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

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FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has risen 64.4% in the past year. The Zacks Consensus Estimate for FIX's 2024 sales and earnings per share indicates growth of 29.4% and 57.8%, respectively, from the prior-year levels.

Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17.4%, on average. Shares of STRL gained 42% in the past year.

The consensus estimate for STRL's 2024 sales and EPS implies an increase of 9.7% and 26.6%, respectively, from the prior-year levels.

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The Zacks Consensus Estimate for FTDR's 2024 sales and EPS indicates an increase of 3% and 18.7%, respectively, from a year ago.

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