Stock of the Day

June 10, 2021

Carrier Global (CARR)

$66.10
-$1.02 (-1.5%)
Market Cap: $58.27B

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.

Carrier Global Bull Case

Here are some ways that investors could benefit from investing in Carrier Global Co.:

  • Carrier Global Co. has a current stock price of $65.19, which is significantly lower than the average target price of $82.64 set by analysts, suggesting potential for price appreciation.
  • The company recently increased its quarterly dividend to $0.225, reflecting a commitment to returning value to shareholders. This represents a 1.38% yield, which is attractive for income-focused investors.
  • Carrier Global Co. has received multiple upgrades from analysts, including a recent upgrade to a "buy" rating from UBS Group, indicating positive sentiment and confidence in the company's growth prospects.
  • The company has initiated a stock buyback program allowing for the repurchase of up to $3.00 billion in shares, signaling that management believes the stock is undervalued and is taking steps to enhance shareholder value.
  • With a market capitalization of approximately $58.49 billion and a solid P/E ratio of 16.50, Carrier Global Co. is positioned well in the HVAC and building automation market, which is expected to grow due to increasing demand for energy-efficient solutions.

Carrier Global Bear Case

Investors should be bearish about investing in Carrier Global Co. for these reasons:

  • The stock has experienced volatility, with a 52-week low of $53.13, indicating potential risks associated with price fluctuations that could affect investor returns.
  • Despite recent upgrades, the consensus rating remains a "Moderate Buy," which may suggest that some analysts are cautious about the stock's near-term performance.
  • The company's debt-to-equity ratio stands at 0.69, which, while manageable, indicates that the company is using a significant amount of debt to finance its operations, potentially increasing financial risk.
  • Carrier Global Co. has a PEG ratio of 2.11, which may indicate that the stock is overvalued relative to its earnings growth potential, making it less attractive for growth-oriented investors.
  • Recent price target reductions by analysts, including Barclays lowering its target from $90.00 to $87.00, may reflect concerns about the company's future performance and market conditions.

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