Why Otis Worldwide Corporation (OTIS) Lagged Performance on Wednesday

We recently published an article titled These 10 Firms Led Lagged Performance on Wednesday. In this article, we are going to take a look at where Otis Worldwide Corporation (NYSE:OTIS) stands against the other stocks.

Wall Street’s major indices finished in the green territory anew on Wednesday as worries about tariff policies and the Federal Reserve’s independence tapered off following President Donald Trump’s assurance that he had no intentions of ousting Jerome Powell.

The Nasdaq surged by 2.5 percent, the S&P 500 rose by 1.67 percent, while the Dow Jones increased by 1.07 percent.

Ten companies, on the other hand, led the highest declines, booking modest losses during the trading session.

In this article, we have identified Wednesday’s 10 worst-performing stocks and detailed the reasons behind their lagging performance.

To come up with the list, we considered only the stocks with more than $2 billion in market capitalization and $5 million in trading volume.

Otis Worldwide Corporation (NYSE:OTIS)

Otis Worldwide Corporation (NYSE:OTIS) dropped its share prices by 6.72 percent on Wednesday to end at $92.30 apiece as investors sold off positions following the company’s dismal earnings performance in the first quarter of the year.

In a statement, Otis Worldwide Corporation (NYSE:OTIS) said net income fell by 31 percent to $243 million from $353 million in the same period a year earlier, while net sales dipped by 3 percent to $3.35 billion from $3.437 billion year-on-year, primarily due to new equipment in China.

In the same announcement, Otis Worldwide Corporation (NYSE:OTIS) also revised its full-year 2025 outlook, with net sales now expected to increase by 3 to 4 percent to a range of $14.6 billion to $14.8 billion year-on-year.

Otis Worldwide Corporation (NYSE:OTIS) is one of the leading manufacturers of elevators and escalators, with 2.4 million customer units worldwide.

Overall OTIS ranks 5th on our list of the worst performing stocks on Wednesday. While we acknowledge the potential of OTIS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.