Carrier Global Stock Forum

Insider selling at Carrier Global may hint at insiders believing shares are overpriced. High insider ownership could mean management's interests align with shareholders. Yet, absence of insider buying and recent selling activity raises caution.

Industrial sector's diversity, with various end markets, contributes to its robust performance. Firms like Eaton and Carrier Global are profiting from demand in electrification, new infrastructure, and energy-efficient systems. Provided material costs and employee pay don't surge, profit margins can grow and stock buybacks can continue. Despite potential short-term vulnerability, long-term growth and gains are anticipated for industrial stocks.

Despite underwhelming recent earnings, Carrier Global's high P/E ratio is deemed warranted due to strong anticipated growth, say analysts. Investors remain positive with no major earnings deterioration foreseen, thus paying more for future earnings potential.

Microsoft is regarded as an undervalued AI leader with huge profitability; Etsy's restructuring is seen favorably; Hertz's transition year is deemed challenging; L3Harris' plan for revenue increase receives positive views; Costco's growth and salary policies are compelling amid uncertainty; Carrier Global's divestiture strategy is welcomed as it becomes a HVAC pure play.

Investors welcome the company's transformation through this move. Carrier anticipates that the transaction can quicken its growth strategy, possibly leading to superior shareholder value. The proceeds from the sale will aid debt repayment from the Viessmann Climate Solutions acquisition.

The increase of dividend is seen as a sign of Carrier's confidence in its strategy, long-term prospect, and portfolio transformation. The company anticipates further evaluations of dividend increases as it quickly de-levers following the Viessmann Climate Solutions acquisition.

Despite Carrier Global's decent ROE, its high debt level brings potential risks and limitations for the firm's future. These are key factors for potential investors, as high-quality companies usually showcase a high ROE with low debt.

J.P. Morgan predicts a shift in industrial leadership, influenced by future mega projects. Eaton is forecasted to show consistent growth, keeping its multiple above average. Trane Technologies, with a more stable outlook, is preferred over Carrier Global.