Ken Fisher Strategy: 5 New Stock Picks

4. Johnson Controls International plc (NYSE:JCI)

Number of Hedge Fund Holders: 33

Fisher Asset Management’s Stake Value: $247,482,000

Johnson Controls International plc (NYSE:JCI) engages in engineering, manufacturing, commissioning, and retrofitting building products and systems worldwide. The company operates through four segments – Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. Ken Fisher added Johnson Controls International plc (NYSE:JCI) to his Q3 portfolio by purchasing over 5 million shares worth $247.4 million, representing 0.18% of the total 13F securities. 

On November 3, Johnson Controls International plc (NYSE:JCI) reported a Q3 non-GAAP EPS of $0.99, beating market estimates by $0.01. The company initiated fiscal 2023 adjusted EPS guidance of $3.20 to $3.60, an increase of 7% to 20% year-over-year versus a consensus of $3.

Citi analyst Andrew Kaplowitz raised the price target on Johnson Controls International plc (NYSE:JCI) on November 4 to $64 from $54 and kept a Neutral rating on the shares. The company’s in-line fiscal 2022 results and “encouraging” fiscal 2023 outlook indicate robust demand trends across Johnson Controls International plc (NYSE:JCI)’s end markets, the analyst wrote in a research note.

According to Insider Monkey’s data, 33 hedge funds were long Johnson Controls International plc (NYSE:JCI) at the end of the second quarter of 2022, compared to 44 funds in the prior quarter. 

Here is what Aristotle Capital Management Value Equity has to say about Johnson Controls International plc (NYSE:JCI) in its Q1 2022 investor letter:

“As investors since the fourth quarter of 2017, we have enjoyed a front-row view of the large transformation that has taken place at Johnson Controls. Once a multi-industrial corporation, the company successfully turned itself into a pure-play buildings solutions and technology provider. Catalysts we previously identified for Johnson Controls included synergies following its merger with Tyco International, which provides fire safety and building security products, as well as benefits from its separation of non-building-focused businesses, such as automotive seating and batteries. With all catalysts in sight now nearing completion, and Johnson Controls now a better business for it – with higher recurring revenues and lower capital intensity – we decided to exit our investment to help fund the purchases of Xcel Energy and Atmos Energy.”