Time To Add Johnson Controls (JCI) To Your Portfolio?
Zacks Investment Research | Apr 05, 2018 02:36AM ET
On Apr 4, Zacks Investment Research upgraded Johnson Controls International plc (NYSE:JCI) to a Zacks Rank #2 (Buy). Going by the Zacks model, companies carrying a Zacks Rank of 2 have higher chances of outperforming the broader market.
Johnson Controls reportedly acquired Nashville-based Smartvue Corporation. The acquisition will enable it to provide a cloud-based video surveillance solution in a cost-efficient, fast and protected way. This will enhance offerings under its Building Technology & Solutions segment.
This recent development is in sync with Johnson Controls’ strategy of acquiring and merging for offering customers with world-class technologies through strong complementary brands and channels.
Johnson Controls International plc Price and Consensus
Beside, it is also planning to search strategic options to develop the Power Solutions segment that offers advanced battery solutions to both automotive original equipment manufacturers (OEMs) and the battery aftermarket.
Further, the company maintained its record of paying dividends since 1887, boosting shareholders’ confidence. In March, it announced a quarterly cash dividend of 26 cents to be payable on Apr 13, 2018, to shareholders of record as of Mar 19, 2018. Additionally, during first-quarter fiscal 2018, Johnson Controls repurchased 3.6 million shares for roughly $150 million.
Moreover, the company recorded adjusted earnings of 54 cents per share in first-quarter fiscal 2018, in comparison with 53 cents registered in first-quarter fiscal 2017. Also, quarterly revenues rose year over year to $7.44 billion in comparison with $7.1 billion recorded in the prior year.
Moreover, the company reaffirmed its guidance for fiscal 2018. It anticipates a 6-10% year-over-year rise in adjusted EPS before special items to be $2.75-$2.85.
In the last six months, shares of Johnson Controls outperformed the industry it belongs to. During the period, its stock lost 14.7% in comparison with the industry’s loss of 33.3%.
Other Stocks to Consider
A few other top-ranked stocks in the auto space are Tenneco Inc. (NYSE:TEN) , Spartan Motors, Inc. (NASDAQ:SPAR) and Standard Motor Products, Inc. (NYSE:SMP) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
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Tenneco has expected long-term growth rate of 13.5 %. Over a month, shares of the company rose 1.4%.
Spartan Motors has expected long-term growth rate of 15%. In the last six months, shares of the company gained 35.7%.
Standard Motor has expected long-term growth rate of 6%. Shares of the company gained 0.7% over the last six months.
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