Otis is the world's largest elevator and escalator manufacturing, installation, and services company. The company's 72,000 employees operate from more than 1,400 branches and offices and include 40,000 field technicians. It has more than two million maintenance units under contract and operates in 200 countries. Otis was founded in 1853 and is based in Farmington, CT. The shares are a component of the S&P 500.

This week features an earnings report form discount giant Costco and some new inflation data. Last week, the Dow Jones Industrial Average rose 2%, the S&P 500 gained 1%, and the Nasdaq was flat. Year to date, the DJIA is up 5%, the S&P is higher by 9%, and the Nasdaq has popped 13%. Drilling down on the earnings calendar, AutoZone reports on Tuesday; Marvell Technology, Salesforce, Snowflake, HP, and Dick's Sporting Goods on Wednesday; and Costco Wholesale, Dell, MongoDB, Best Buy, and Dollar Tree on Thursday. Some 94% of S&P 500 companies have reported so far, and overall earnings are up 29% over last quarter. Information Technology, up 55%, and Communication Services, up 51%, are leading the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%, according to LSEG I/B/E/S. On the economic calendar, the Case-Shiller Home Price Index is due out on Tuesday; Durable Goods and New Home Sales will be reported on Thursday; and the Personal Consumption Expenditures Index (an inflation indicator) will hit the tape on Friday. Gas prices remain elevated though prices dropped a penny last week and are now at an average of $4.49 per gallon for regular gas. The Atlanta Fed GDPNow forecasts 4.3% growth in GDP for 2Q. That's a big jump from 2% in 1Q. The Cleveland Fed Inflation Nowcast calls for CPI of 4.2% in May. That a step-up from the 3.8% print for April and 3.3% in March. Mortgage rates jumped 15 basis points last week, with the average 30-year fixed-rate mortgage now at 6.51%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on June 17, and will be the first under the chairmanship of Kevin Warsh. Odds are at 3% for a rate hike at that meeting, a reversal from previous odds that called for a rate cut. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 8% year to date, while the leading emerging market ETF (EEM) is up 20%. U.S. growth stocks are up 5% year to date as per the ETF IWF, while value stocks (IWD) are up 12%. Crude oil prices continue to be volatile. On Friday, oil was at $97 per barrel, up 67% for the year to date. In other asset classes for the year to date, AGG bonds are down 2%, gold is up 3%, and Bitcoin is down 13%. The U.S. dollar is up 1%, tracking DXY. The VIX Volatility Index was about 17 on Friday, below its historical average of 20. Turning to sector performance, the list from first as of May 15, is Energy (+32%), Information Technology (+17%), Communication Services (+11%), Consumer Staples (+11%), Industrials (+10%), Materials (+10%), Real Estate (+8%), Utilities (+3%), Consumer Discretionary (flat), Financials (-7%), and Healthcare (-7%).

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. In 1854 Otis’ founder and namesake Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed. The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.