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Strength Seen in Otis Worldwide (OTIS): Can Its 7% Jump Turn into More Strength?

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Otis Worldwide (OTIS - Free Report) shares ended the last trading session 7% higher at $76.27. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5% gain over the past four weeks.

Shares of Otis got a boost after the company's first-quarter 2021 results outpaced analysts' expactation as well as its previous guidance.

Backed by solid first quarter results, the company raised its full year 2021 guidance as well as increased dividends by 20% and share repurchase target to half a billion dollars, demonstrating the ongoing commitment to create value for its shareholders.

Price and Consensus

Price Consensus Chart for OTIS

This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +3.3%. Revenues are expected to be $3.13 billion, up 5.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Otis Worldwide, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OTIS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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