Is Johnson Controls Stock a Buy for the Second Half of 2021?

Published 07/02/2021, 08:22 AM
Updated 07/02/2021, 09:30 AM
© Reuters.  Is Johnson Controls Stock a Buy for the Second Half of 2021?
JCI
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The shares of Johnson Controls (NYSE:JCI) have delivered 48.1% returns so far this year, with the company leveraging its wide portfolio of products and strategic partnerships. However, after closing yesterday’s trading session at its 52-week high of $69.21, does the stock have more room to advance in the second half of 2021? Let’s find out.Headquartered in Cork, Ireland, diversified technology and multi-industrial company Johnson Controls International’s (JCI) shares have more than doubled since hitting their $33.33, 52-week low on July 10, 2020. The stock has rallied 69.6% over the past nine months and15.2% over the past three months to close yesterday’s trading session at $69.01, after hitting its 52-week high of $69.21. The surge can be attributed in part to increasing demand for its heating, ventilation and air conditioning (HVAC) related products and services amid growing climate change concerns.

JCI and the City of La Crosse launched the next phase of the City's sustainability initiative last month. The company completed the acquisition of Silent-Aire on May 12, which further expands its portfolio of sustainable and reliable data center solutions.

Given the favorable backdrop, JCI has raised its fiscal 2021 full-year guidance. It now expects its adjusted EPS to come in between $2.58 - $2.65. And the company’s adjusted segment EBITDA margin is expected to be between 70 - 90 basis points.

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