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Carrier Global Corporation (CARR), headquartered in Palm Beach Gardens, Florida, provides heating, ventilating, air conditioning, refrigeration, fire, security, and building automation technologies. Valued at $56.1 billion by market cap, the company also provides building services such as audit, design, installation, system integration, repair, maintenance, and monitoring.
Shares of this global leader in intelligent climate and energy solutions have underperformed the broader market over the past year. CARR has gained 12.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. However, things are looking up for the stock in 2024, with CARR’s stock up 12.2%, surpassing SPX’s 11.5% rise on a YTD basis.
Narrowing the focus, CARR’s underperformance is also apparent when compared to the SPDR S&P Homebuilders ETF (XHB). The exchange-traded fund has gained about 27.1% over the past year. Moreover, the ETF’s 12.5% gains on a YTD basis outshine the stock’s returns over the same time frame.
CARR shares closed down more than 1% on Jul. 25 after reporting mixed Q2 results. Its adjusted EPS of $0.87 topped Wall Street expectations of $0.85. However, the company’s revenue was $6.69 billion, falling short of Wall Street forecasts of $7.05 billion. On the bright side, its adjusted operating margin expanded by 200 bps, and the company also reaffirmed its full-year adjusted EPS, expecting it to be between $2.80 and $2.90.
For the current fiscal year, ending in December, analysts expect CARR’s EPS to grow 4% to $2.84 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 17 analysts covering CARR stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with eight suggesting a “Strong Buy.”
On Jul. 29, BofA analyst Andrew Obin upgraded CARR to a Neutral” rating from “Underperform,” raising the price target from $55 to $72, implying a potential upside of 11.7% from current levels.
The mean price target of $70.78 represents a 9.8% premium to CARR’s current price levels. The Street-high price target of $81 suggests an upside potential of 25.6%.
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.
