Carrier Global Corporation Faces Challenges Amid Growth in Building Technology
Carrier Global Corporation (CARR), based in Palm Beach Gardens, Florida, specializes in advanced heating, ventilation, air conditioning, refrigeration, fire, security, and building automation technologies. The company’s market capitalization is currently valued at $65.7 billion, showcasing its significant role in the industry. Carrier also offers essential building services including audit, design, installation, system integration, repair, maintenance, and monitoring.
Strong Presence in HVAC and Refrigeration Markets
CARR is recognized as a large-cap stock, given its market cap of over $10 billion, which highlights its influence and leadership in the building products and equipment sector. The acquisition of Viessmann Climate Solutions has bolstered its market reach, while the strategic divestiture of non-core businesses signifies the company’s commitment to its key strengths and improved resource management.
Stock Performance and Market Trends
Despite its strong market position, CARR’s stock recently fell 12.6% from its 52-week high of $83.32 reached on October 15. Over the last three months, the stock has risen by 1.4%, which is noticeably lower than the Nasdaq Composite’s growth of 15.6% in the same period.
Looking at the long-term performance, CARR’s shares are up 26.7% year-to-date and 31.7% over the past 52 weeks, though these figures still lag behind the Nasdaq’s year-to-date growth of 31.2% and its annual increase of 36.7%.
Since late October, CARR’s stock has traded below its 50-day moving average, yet it has consistently remained above the 200-day moving average for most of the year.
Quarterly Earnings and Future Outlook
On October 24, after announcing its Q3 results, CARR shares dropped over 8%. The company reported an adjusted EPS of $0.83 that exceeded Wall Street’s expectation of $0.81. However, its revenue of $6 billion fell short of analysts’ forecast of $6.6 billion. Carrier anticipates a full-year adjusted EPS of $2.50 and expects total revenue to reach $22.5 billion.
In contrast, Trane Technologies plc (TT) has outperformed Carrier by showing a 62.9% increase year-to-date and a notable 69.8% rise over the past year.
Analysts’ Insights on CARR
Wall Street has a cautiously optimistic view of CARR’s future. The stock holds a consensus “Moderate Buy” rating from 20 analysts, with a mean price target of $85.38, indicating a potential upside of 17.3% from its current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
