Recently we took a detailed look at the Top 10 Trending Stocks and Otis Worldwide Corp (NYSE:OTIS) was one of the stocks that were highlighted in that article.
The volatile tariff policies of the new US administration and a slowdown in AI-related enthusiasm took a toll on the market over the past few weeks. However, some analysts believe a rebound is due.
Fundstrat’s Tom Lee said in a latest program on CNBC that he believes the US stock market will begin to recover starting April 2. Here is how Lee explained the reasons behind his positive outlook:
“When markets fall this quickly from a 52-week high, just remember less than a month ago we were at all-time highs. That is a market pricing in a crisis. I’d say almost 50% pricing in a recession, and we’re assuming there’s no Fed put now. The Fed is in a position to cut rates that really should mitigate the downside. I do think two other things that investors have to keep in mind, because many people just want to get out until April 2nd, is number one, I do think there’s a very high probability that a tariff solution happens before the next three weeks happens. It’s simple to see because China, Europe, Canada, Mexico since April 18th—all of those countries have outperformed the US. I don’t think that markets are that blind to say if Canada and Mexico are about to have a recession, they should outperform the US. The second thing people should keep in mind is that when you have a global crisis brewing—and we highlighted like the 1962 Cuban Missile Crisis—that was a 12-day crisis, but the markets bottomed seven days into the crisis, five days before that crisis ended, the market had already recovered two-thirds of the losses.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks notable Wall Street analysts were discussing recently. With each stock we have mentioned its latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a safety harness inspecting a passenger elevator in a modern office building.
10. Otis Worldwide Corp (NYSE:OTIS)
Number of Hedge Funds Investors: 32
Otis Worldwide Corp (NYSE:OTIS) makes elevators and escalators. Josh Brown, CEO of Ritholtz Wealth Management, explained in a latest program on CNBC why he’s bullish on the stock:
“This is another industrial, and the like up 10% year to date, 7% in the past month, bucking the market trend. RSI is 64. It’s above its 50, it’s above its 200, and it’s a 24 forward PE, 22 forward PE, so it’s not like you’re paying up for some sort of a momentum stock. I like this name, Otis. I think we’re going to get a breakout to all-time highs.”
OTIS ranks 10th among our list of the top 10 trending stocks. While we acknowledge the potential of OTIS, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OTIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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