Saturday, October 17, 2015

Time to Buy Johnson Controls?

After the S&P 500's recent falls, many investors will be looking at picking up some stocks at bargain-basement prices, and Johnson Controls  could fit the bill. Since trading around the $50 mark in June, the stock is off around 20% as I write. The move has attracted Goldman Sachs analysts, who recently upgraded the stock from "neutral" to "buy," saying the market has already priced in the heightened risk in the automotive sector in China. It's not a view that I share, and it should be noted that Goldman Sachs was recently hired to give financial advice for the spinoff of the company's automotive experience segment. With that said, let's look at five takeaways from the third-quarter earnings call that might be support the bullish case for the stock.


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