Is the Market Overlooking Carrier Global Stock’s Next Move?

Here is why we think Carrier Global (CARR) stock deserves consideration as a value stock. It is currently trading nearly 29% below its 1 year high, and also trading at a PS multiple which is below the average for the last 3 years. However, it has reasonable fundamentals for its level of valuation.

• Reasonable Revenue Growth: 9.0% LTM and 3.7% last 3 year average.
• Cash Generative: Nearly 2.4% free cash flow margin and 10.9% operating margin LTM.
• No Major Margin Shocks: Carrier Global has avoided any margin collapse in the last 12 months.
• Modest Valuation: Despite encouraging fundamentals, CARR stock trades at a PE multiple of 12.3
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher LTM revenue growth, but lower margins

As a quick background, Carrier Global provides HVAC, refrigeration, fire, security, and building automation technologies, including air conditioners, heating systems, controls, and aftermarket components across three business segments.

Single stock can be risky, but there is a huge value to a broader diversified approach. Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell CARR Stock to see if Carrier Global still has an edge that holds up under the hood.

Stocks Like These Can Outperform. Here Is Data

Below are statistics for stocks with same selection strategy applied between 12/31/2016 and 6/30/2025.

• Average 6-month and 12-month forward returns of 12.7% and 25.8% respectively
• Win rate (percentage of picks returning positive) of > 70% for both 6-month and 12-month periods
• Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 20% with 67% win rate.

But Consider The Risk

That said, CARR isn’t immune to big drops. It fell about 25% during the Covid pandemic and even more — roughly 41% — during the 2022 inflation shock. These aren’t minor blips. Even with solid fundamentals, when the market faces major stress, CARR can take a sizable hit. Risk is always there, no matter how favorable things look on paper.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.