Carrier Global (CARR) has achieved a critical milestone by finalizing the purchase of Viessmann Climate Solutions from Viessmann Group. This transaction propels Carrier to the forefront of the Residential and Light Commercial space in Europe, bolstering its position in intelligent climate and energy solutions.
This acquisition enriches Carrier’s portfolio with highly efficient and renewable climate solutions and enables the company to comprehensively address home climate and energy needs, including heating, cooling, renewables, solar PV, battery storage, and energy management.
Strong Portfolio Aids Prospect
In the past six months, shares of the company have risen 12.3%, outperforming the Zacks Computer and Technology Sector’s 10.3% growth. Carrier’s strong product portfolio has been instrumental in winning market share in the sustainable environmental solution domain.
Notably, Carrier has been actively enhancing its commitment to sustainability through various initiatives. Recently, it launched the One DV, One Tree initiative, in which a tree is planted for each AquaEdge 19DV chiller sold in Singapore. It has also introduced the i-Vu weather forecasting add-on to enhance its building automation system.
Divestitures Help Core Business Focus
Carrier is expected to benefit from its portfolio strength and the divestiture of non-core assets. The recent sale of its commercial refrigeration business to Haier and the security business to Honeywell International align with the company’s strategy to focus on advancing intelligent climate and energy solutions.
CARR’s Guidance Strong
Carrier’s 2023 guidance remains robust, with expected sales in the range of $22.1-$22.2 billion and mid-single-digit organic sales growth. The company also anticipates strong organic sales growth in the container business, commercial refrigeration, and the entire Refrigeration segment.
Despite these positive developments, it is important to note that Carrier currently carries a Zacks Rank #4 (Sell).
Camtek (CAMT), Ceridian HCM (CDAY), and Zoom Video Communication (ZM) are some better ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present.