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While CARR’s shares have returned 38.1%, Johnson Controls’ stock has appreciated 33.2%. DKILY registered a decline of 14.8% year to date. The broader sector has appreciated 24.2% over the same timeframe.
Carrier Global’s robust stock price performance has been driven by its better-than-expected financial results and impressive growth profile.
Carrier’s total reported revenues were $6.7 billion, up 12% year over year in second-quarter 2024. The upside was attributed to the contribution from recent acquisitions and improved organic sales.
In the same quarter, CARR reported a nearly 30% year-over-year increase in organic orders, with HVAC organic orders up more than 40%. The upside was particularly driven by strong order intake in data centers and robust sales in the Global Commercial and Light Commercial HVAC segments.
Will CARR’s Strong Portfolio Aid Prospects?
Carrier is benefiting from an expanding clientele, which further enhanced its market position. In August, Carrier and Sibi announced a collaboration to transform the HVAC industry through enhanced data-driven efficiency and a new optimized supply chain management system.
Carrier’s growth is also bolstered by its acquisitions, particularly with the purchase of Viessmann Climate Solutions. This acquisition strengthens its position as a global leader in sustainable climate and energy solutions, showcasing its commitment to transforming the portfolio and diversifying offerings.
The integration of Viessmann Climate Solutions contributed positively to sales growth, with a net contribution of 11% to sales in the second quarter. The divestiture of non-core businesses also helped focus resources on higher-growth areas.
Apart from acquisitions, Carrier is also enhancing its focus on advancing intelligent climate and energy solutions through divestitures.
Carrier announced the completion of the sale of its security business, Global Access Solutions, to Honeywell International (HON - Free Report) .
In June, Carrier completed the sale of its security business, Global Access Solutions, to Honeywell for $4.95 billion, with plans to use the proceeds to reduce debt and resume share repurchases by the end of 2024.
The divestitures will allow Carrier to introduce advanced products aligned with sustainability goals and contribute to decarbonizing the planet for future generations.
CARR Suffers From Persistent Headwinds
Despite Carrier’s strong portfolio, intense competition in its HVAC, refrigeration, and fire and security businesses creates pricing pressure. It poses significant risks to its market position, which, in turn, affects the company’s margins.
Weakness in Europe and China impacted Residential and Light Commercial (RLC) businesses and softness in commercial refrigeration is a concern.
In third-quarter 2024, CARR expects sales of about $6.6 billion. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $6.56 billion, indicating 14.44% growth year over year.
It anticipates earnings to be about 80 cents per share. The Zacks Consensus Estimate is pegged at 81 cents per share, which remained unchanged in the past 30 days. The figure calls for a year-over-year decline of 8.99%.
What Investors Should Do With CARR Stock?
Carrier stock is not so cheap, as its Value Score of D suggests a stretched valuation at this moment.
In terms of the forward 12-month Price/Sales, CARR is trading at 3.11X, higher than its median of 2.24X and the Zacks Electronics - Miscellaneous Products industry’s 1.83X.
Carrier currently carries Zacks Rank #4 (Sell), which implies that investors should stay away from investing in this stock at present.
Image: Bigstock
Carrier Global Rises 38% YTD: Buy, Sell or Hold the Stock?
Carrier Global’s (CARR - Free Report) shares have outperformed the Zacks Computer & Technology sector and its peers Daikin Industries (DKILY - Free Report) and Johnson Controls International (JCI - Free Report) on a year-to-date (YTD) basis.
While CARR’s shares have returned 38.1%, Johnson Controls’ stock has appreciated 33.2%. DKILY registered a decline of 14.8% year to date. The broader sector has appreciated 24.2% over the same timeframe.
Carrier Global’s robust stock price performance has been driven by its better-than-expected financial results and impressive growth profile.
Carrier’s total reported revenues were $6.7 billion, up 12% year over year in second-quarter 2024. The upside was attributed to the contribution from recent acquisitions and improved organic sales.
Carrier Global Corporation Price and Consensus
Carrier Global Corporation price-consensus-chart | Carrier Global Corporation Quote
In the same quarter, CARR reported a nearly 30% year-over-year increase in organic orders, with HVAC organic orders up more than 40%. The upside was particularly driven by strong order intake in data centers and robust sales in the Global Commercial and Light Commercial HVAC segments.
Will CARR’s Strong Portfolio Aid Prospects?
Carrier is benefiting from an expanding clientele, which further enhanced its market position. In August, Carrier and Sibi announced a collaboration to transform the HVAC industry through enhanced data-driven efficiency and a new optimized supply chain management system.
Carrier’s growth is also bolstered by its acquisitions, particularly with the purchase of Viessmann Climate Solutions. This acquisition strengthens its position as a global leader in sustainable climate and energy solutions, showcasing its commitment to transforming the portfolio and diversifying offerings.
The integration of Viessmann Climate Solutions contributed positively to sales growth, with a net contribution of 11% to sales in the second quarter. The divestiture of non-core businesses also helped focus resources on higher-growth areas.
Apart from acquisitions, Carrier is also enhancing its focus on advancing intelligent climate and energy solutions through divestitures.
Carrier announced the completion of the sale of its security business, Global Access Solutions, to Honeywell International (HON - Free Report) .
In June, Carrier completed the sale of its security business, Global Access Solutions, to Honeywell for $4.95 billion, with plans to use the proceeds to reduce debt and resume share repurchases by the end of 2024.
The divestitures will allow Carrier to introduce advanced products aligned with sustainability goals and contribute to decarbonizing the planet for future generations.
CARR Suffers From Persistent Headwinds
Despite Carrier’s strong portfolio, intense competition in its HVAC, refrigeration, and fire and security businesses creates pricing pressure. It poses significant risks to its market position, which, in turn, affects the company’s margins.
Weakness in Europe and China impacted Residential and Light Commercial (RLC) businesses and softness in commercial refrigeration is a concern.
In third-quarter 2024, CARR expects sales of about $6.6 billion. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $6.56 billion, indicating 14.44% growth year over year.
It anticipates earnings to be about 80 cents per share. The Zacks Consensus Estimate is pegged at 81 cents per share, which remained unchanged in the past 30 days. The figure calls for a year-over-year decline of 8.99%.
What Investors Should Do With CARR Stock?
Carrier stock is not so cheap, as its Value Score of D suggests a stretched valuation at this moment.
In terms of the forward 12-month Price/Sales, CARR is trading at 3.11X, higher than its median of 2.24X and the Zacks Electronics - Miscellaneous Products industry’s 1.83X.
Carrier currently carries Zacks Rank #4 (Sell), which implies that investors should stay away from investing in this stock at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.