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Why Sell Strategy is Apt for Johnson Controls (JCI) Stock
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On Jul 3, Zacks Investment Research downgraded Johnson Controls International plc (JCI - Free Report) to a Zacks Rank #4 (Sell).
The company’s strategy of divesting several businesses is adversely affecting its revenues and profits. Notably, in Mar 2017, Johnson Controls inked an agreement to sell its Scott Safety business to 3M Company (MMM - Free Report) . Also, the company closed the divestiture of its ADT South Africa business in the same month. Besides, the separation expenses related to the spin-off of its Automotive Interiors business is proving to be costly for the company.
Additionally, deconsolidation of the automotive interiors business and negative foreign currency translation is affecting Johnson Controls’ results. In fact, revenues in the first half of fiscal 2017 were also adversely affected due to foreign currency translations.
In late April, Johnson Controls reported second-quarter fiscal 2017 adjusted earnings of 50 cents per share, in line with the Zacks Consensus Estimate. Earnings rose 11% from 45 cents in second-quarter fiscal 2016.
Johnson Controls has underperformed the Zacks categorized Industrial Products-Security and Safety Services industry in the last three months. The company’s share price has increased 4.7%, while the industry gained 6%.
Currently, Johnson Controls carries a Zacks Rank #4 (Sell). 3M Company has a Zacks Rank #2 (Buy).
Two other top-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , and Allison Transmission Holdings, Inc. (ALSN - Free Report) . While Ferrari sports a Zacks Rank #1 (Strong Buy), Allison Transmission Holdings carries a Zacks Rank #2 (Buy).
Expected long-term growth rate for Ferrari and Allison Transmission Holdings and Dana Incorporated are 14.1% and 11%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Why Sell Strategy is Apt for Johnson Controls (JCI) Stock
On Jul 3, Zacks Investment Research downgraded Johnson Controls International plc (JCI - Free Report) to a Zacks Rank #4 (Sell).
The company’s strategy of divesting several businesses is adversely affecting its revenues and profits. Notably, in Mar 2017, Johnson Controls inked an agreement to sell its Scott Safety business to 3M Company (MMM - Free Report) . Also, the company closed the divestiture of its ADT South Africa business in the same month. Besides, the separation expenses related to the spin-off of its Automotive Interiors business is proving to be costly for the company.
Additionally, deconsolidation of the automotive interiors business and negative foreign currency translation is affecting Johnson Controls’ results. In fact, revenues in the first half of fiscal 2017 were also adversely affected due to foreign currency translations.
In late April, Johnson Controls reported second-quarter fiscal 2017 adjusted earnings of 50 cents per share, in line with the Zacks Consensus Estimate. Earnings rose 11% from 45 cents in second-quarter fiscal 2016.
Johnson Controls has underperformed the Zacks categorized Industrial Products-Security and Safety Services industry in the last three months. The company’s share price has increased 4.7%, while the industry gained 6%.
Currently, Johnson Controls carries a Zacks Rank #4 (Sell). 3M Company has a Zacks Rank #2 (Buy).
Two other top-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , and Allison Transmission Holdings, Inc. (ALSN - Free Report) . While Ferrari sports a Zacks Rank #1 (Strong Buy), Allison Transmission Holdings carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Expected long-term growth rate for Ferrari and Allison Transmission Holdings and Dana Incorporated are 14.1% and 11%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>