Palm Beach Gardens, Florida-based Carrier Global Corporation (CARR) is a leading provider of intelligent climate and energy solutions. Valued at a market cap of $46.2 billion, the company offers heating, ventilation, and air conditioning (HVAC) systems, refrigeration equipment, fire and security products, and building automation technologies for residential, commercial, and industrial customers.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and CARR fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the building products & equipment industry. The company continues to expand its portfolio through innovation and strategic acquisitions to meet rising demand for decarbonization, electrification, and indoor air quality.
This industrial company has dipped 32.3% from its 52-week high of $81.09, reached on Jul. 28. Shares of CARR have declined 17.1% over the past three months, considerably underperforming the S&P 500 Index’s ($SPX) 5.3% rise during the same time frame.
Moreover, on a YTD basis, shares of CARR are down 19.6%, compared to SPX’s 16.5% return. In the longer term, CARR has decreased 28.6% over the past 52 weeks, significantly lagging behind SPX’s 14.2% uptick over the same time frame.
To confirm its bearish trend, CARR has been trading below its 200-day and 50-day moving averages since late July.
On Oct. 28, CARR reported better-than-expected Q3 results, and its shares surged 3.4% in the following trading session. The company’s net sales declined 6.8% year-over-year to $5.6 billion, but topped analyst estimates by a slight margin. Moreover, while its adjusted EPS of $0.67 also fell 13% from the year-ago quarter, it came in 17.5% ahead of consensus estimates. Continued double-digit aftermarket growth and strong momentum in Commercial HVAC supported its performance. Although these gains were more than offset by the anticipated weakness in the residential end-markets in the Americas.
CARR has significantly underperformed its rival, Johnson Controls International plc (JCI), which soared 38.9% over the past 52 weeks and 47.4% on a YTD basis.
Despite CARR’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 23 analysts covering it, and the mean price target of $73.90 suggests a 34.7% premium to its current price levels.
On the date of publication, Neharika Jain 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.
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