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do.
After being relegated back to a three-star
rankover the past several months, enough top-performing
CAPS members have turned bullish on
Johnson Controls (NYSE: JCI) recently to
upgrade it to a more formidable
four
stars. A total of 877 members have given their opinion on
the company, with many offering analysis and commentary to
explain their recent optimism.
Many CAPS members like Johnson Controls' foothold in green
technologies, and they
expect it to benefitfrom a continued push toward more
efficient technologies. The company operates in power
solutions and the growing building efficiency market, along
with rivals such as
Honeywell (NYSE: HON) and
United Technologies (NYSE: UTX). Johnson
Controls also brings in a significant portion of sales from
the auto industry, with customers such as
Ford (NYSE: F), GM, and
Toyota (NYSE: TM).
The company recently scored the largest of several federal
grants aimed at boosting electric vehicle technology, along
with other recipients such as
Navistar (NYSE: NAV), Ford, and
Dow Chemical (NYSE: DOW). The company will
build battery packs and cells for hybrids, which many see as
a big future revenue driver. Johnson Controls also estimates
that it could capture a chunk of the roughly $12 billion in
stimulus money earmarked for making government buildings more
energy-efficient, and it anticipates a big jump in its
backlog in the next year.
Although Johnson Controls has suffered under slower
automotive and construction spending in recent quarters, it
expects
increasing profitsin the current quarter and into 2010,
and it's managed to pull in nearly $500 million in free cash
flow over the past 12 months. And CAPS members like the
company's
unbelievably solid dividend, which it's paid to
shareholders since 1887.
Do you think Johnson Controls deserves its raised status?
Add your thoughts in the comments box below, or head over to
CAPS to rate it yourself. While you're at it, see what the
very best CAPS analysts
are saying
nowabout the company.
This article was originally published as
A Big Upgrade for Johnson Controlson
Fool.com
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