Johnson Controls (JCI) stock is rallying 11% after the company raised its 2025 profit outlook and disclosed that it had hired a new CEO.

The company develops building products and systems, including heating, ventilating, and air conditioning. Additionally, it markets cooling systems and security infrastructure to data centers.

Aerial view of high-rise buildings representing the investing and ownership of Equity Real Estate Investment Trust.

JCI Raises Its EPS Outlook and Names a New CEO

JCI now expects its fiscal 2025 earnings per share, excluding certain items, to come in between $3.50 and $3.60, versus its previous outlook of $3.40 to $3.50.

The firm also announced that it had recruited Joakim Weidemanis as its new CEO. Weidemanis, who will take over the role in March, is now Executive VP, Diagnostics and China at life sciences firm Danaher (DHR). He has been in the latter role since July 2022 and has worked at Danaher for nearly 14 years, according to his LinkedIn profile.

"Joakim's approach to leading service-oriented businesses aligns well with both the Johnson Controls approach and our end-to-end operating model," said Jürgen Tinggren, the lead independent director of JCI's board in a statement.

More Information About JCI

In the company's fiscal Q1, JCI generated adjusted EPS of 64 cents, well above analysts' average estimate of 59 cents, the company reported today. Its sales came in at $5.43 billion, versus the mean outlook of $5.29 billion.

In the last month, the shares have risen 8%, while they are up 6% in the last three months.

While we acknowledge the potential of JCI, our conviction lies in the belief that some 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 JCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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