Carrier Global (NYSE:CARR) Invests Additional US$1 Billion in U.S. Expansion and Innovation

Carrier Global (NYSE:CARR) recently announced a significant $1 billion investment plan aimed at expanding U.S. manufacturing and workforce, potentially impacting its share price by 26% over the last month. This boost aligns with the company's strategy to enhance R&D and create thousands of jobs, adding weight to the broader market rally where the Dow and Nasdaq rose amid eased U.S.-China tariffs and a positive inflation report. Additionally, Carrier's improved earnings, revised 2025 guidance, and ongoing share buybacks complemented these gains, reflecting a positive investor sentiment in line with the market's upward trend.

Carrier Global has 2 possible red flags (and 1 which is a bit unpleasant) we think you should know about.

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The recent $1 billion investment plan by Carrier Global could significantly bolster the company's ongoing strategy to enhance R&D and job creation, potentially increasing its market presence and competitive edge. Over the past five years, Carrier's total return was a very large 349.27%, reflecting strong long-term shareholder benefits. In the past year, Carrier outperformed the US Building industry, which saw a 10.3% return, showcasing its resilience and market capability.

Looking at the company's revenue and earnings forecasts, the strategic expansion into areas like smart energy solutions and data center cooling markets aligns with this investment boost, providing a pathway to capture more market share and improve profitability. Analysts project annual revenue growth of 5.3% over the next three years, supported by operational efficiencies and the Viessmann acquisition. The most recent earnings forecast anticipates a rise to US$2.7 billion by 2028. With a share price of US$70.19, this places it 9.3% below the US$77.4 analyst price target, suggesting room for potential upside based on future growth expectations and strategic initiatives.

In light of our recent valuation report, it seems possible that Carrier Global is trading beyond its estimated value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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