Carrier Stock Tripled in 2020: Here's Why It Still Has Room to Run
It's been a momentous year for heating, ventilation, and air conditioning (HVAC) company Carrier Global (NYSE: CARR). The company was created out of the breakup of United Technologies, and since the first day of its listing the stock has risen 221%. At this moment many investors might be thinking about an exit point, but there's a strong case for the stock still being a great value. Here are seven reasons why.
Despite the strong rise, Carrier's valuation still looks attractive. Management expects adjusted operating profit of $2.2 billion and free cash flow (FCF) of $1.5 billion. Based on these figures, Carrier trades on 22.7 times earnings and 21.9 times FCF in 2020. Those figures don't make the stock look like a particularly good value, but they need to be put in the context of a company targeting $700 million in annual run rate cost savings by 2022.
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Source Fool.com
