Jim Cramer - Mad Money
Carrier Global Corporation
CARR-N
PARTIAL BUY
Aug 26, 2024
Their core heating and AC business has been more durable than many expected. Is up 25% this year so far, chasing more business from data centres and run by an excellent CEO. Their reported an okay quarter at the end of July with a mixed forecast, dragged down by an acquisition. but shares rallied on news of 30% organic orders growth, with 40-45% HVAC order growth from both residences and businesses. Data centres run hot and need cooling. Selling at 25x PE now, so not cheap. Will benefit from lower interest rates.
It hasn't grown much and there are better opportunities in the space. He owns A O Smith (AOS) for a building infrastructure play. It is good for growth in water filtration field and there is also growth in the India market.
Any stock related to building data centres has been hammered including this. Recent quarter have been very mixed, partially from data centre worries and now tariff fears. Trades under 22x 2025's estimates. People misunderstand their story.
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Their core heating and AC business has been more durable than many expected. Is up 25% this year so far, chasing more business from data centres and run by an excellent CEO. Their reported an okay quarter at the end of July with a mixed forecast, dragged down by an acquisition. but shares rallied on news of 30% organic orders growth, with 40-45% HVAC order growth from both residences and businesses. Data centres run hot and need cooling. Selling at 25x PE now, so not cheap. Will benefit from lower interest rates.