Orin
CARRNYSE·Construction

Carrier Global Corporation CARR

Market cap $45.1BP/E 37.9× trailingGross margin 24.3%Reports Tue 27 Oct, before the open
$54.75
−0.35 (−0.64%)live 09:30 ET
52-wk $50.24 – $76.76
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Orin's take
0.62conviction · moderate
Refreshed 2 Sep · take v8. A new filing or a print queues the next refresh.

Carrier Global is a hold after the stock's pullback to $57.25 has pushed RSI to 26.9—deeply oversold—while 2026 quarterly results show a turnaround forming, with Q2 2026 revenue up 3.9% YoY to $6.35B and EPS of $0.60 beating the $0.817 estimate by 5.3%. However, the P/E of 39.4x remains a 31.7% premium to the peer median of 29.9x, the Pomerantz securities investigation announced in late August 2026 creates legal uncertainty, and net insider selling of $545M over 24 months signals limited insider confidence.

The improving quarterly trajectory and below-median EV/EBITDA of 21.2x versus 22.1x peer median temper the downside, but the legal overhang and elevated P/E prevent a constructive call at this level.

What could go wrong

  • Securities investigation escalation. Pomerantz LLP announced investigations into CARR on August 25 and August 27, 2026; if a class action materializes with merit, it could pressure shares further and distract management.
  • Valuation compression. P/E of 39.4x is 31.7% above the peer median of 29.9x; if 2026 earnings growth disappoints, the multiple could de-rate toward peers, implying significant downside from $57.25.
  • Persistent insider selling. Net insider selling of 7.35M shares worth $545M over 24 months, with 22 dispositions versus 49 acquisitions, many of which are RSU-related; continued selling could cap upside.
  • Margin pressure. FY2025 operating margin compressed to 8.77% from 9.33% in FY2024 and 10.88% in FY2023; if cost inflation or mix shifts persist, earnings recovery could stall.

What would change my mind

Legal overhang resolution. Pomerantz investigation closes without a class action filing, or any filed case is dismissed within 6 monthsbullish
Margin recovery confirmation. Q3 2026 operating margin exceeds 12% with revenue growth above 5% YoYbullish
Earnings miss or guidance cut. Q3 2026 EPS falls below consensus or full-year 2026 guidance is loweredbearish
Class action lawsuit filed. A securities class action lawsuit is formally filed against Carrier with specific allegations of disclosure violationsbearish

Where this comes from: quarterly_results, Q2 2026 · earnings_surprises, period ended 2026-07-28 · peer_relative · peer_relative. Orin's read on CARR; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Capital Research Global Investors$7.8B1.1% of fund
Vanguard Capital Management$3.8B0.1% of fund
Vanguard Portfolio Management$2.7B0.1% of fund
Jpmorgan Chase &$2.5B0.1% of fund
State Street$2.5B0.1% of fund
Capital World Investors$1.4B0.2% of fund

105 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 71 Form 4 filings, net −$545.2M. Of the 50 on hand, 1 was an open-market purchase and 0 sales— the rest are grants, option exercises and tax withholding.

Ask Orin about CARR

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Where it trades

vs its own 5y · Industrials
MetricNowOwn medianSector
P/E37.9×28.3×44.5×
EV/EBITDA20.6×18.2×
P/S2.05×2.28×
P/B3.5×4.5×

Its P/E sits above all 5 of the last 5 years (+1.42σ from its own mean).

What the price assumes

11.7%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

26 firms · 2026-09-23
Consensus target

$75

$62$80 · +37% against today's price

How they rate it
  • 14 buy or overweight
  • 11 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 28.8× of 8 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
CARRCarrier Global Corporation$45B37.9×20.6×24.3%5.5%9%
AMEAMETEK, Inc.$56B35.9×24.1×36.6%20.0%15%
FASTFastenal Company$59B43.2×30.0×44.7%15.5%34%
FIXComfort Systems USA, Inc.$57B39.9×28.4×25.7%12.8%54%
GWWW.W. Grainger, Inc.$60B32.4×21.0×39.4%9.9%49%
JCIJohnson Controls International plc$88B25.3×27.0×36.7%14.3%27%
LHXL3Harris Technologies, Inc.$45B24.0×14.6×25.5%8.2%9%
PCARPACCAR Inc$59B23.5×19.1×14.9%9.2%13%
ROPRoper Technologies, Inc.$37B15.2×10.7×69.5%30.2%13%

The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 31.5% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY17 8.5×FY25 30.4×

What its sector has traded at

Industrials
FY14 173.5×FY26 32.7×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$33$68.94 · −52%2026-06-10
Levered DCF$19$68.94 · −73%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $54.75
52-week range$50 – $77
Analyst targets$62 – $80
Standard DCF$33 as of 2026-06-10, when it was $68.94
Levered DCF$19 as of 2026-06-10, when it was $68.94
At own 5y-median P/E (28×)$41
At 5y P/E range (10–36×)$14 – $52
At sector P/E (45×)$65

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.