Markets

Is Carrier Global Corporation (CARR) a Great Value Stock Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Carrier Global Corporation (CARR). CARR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 18.03 right now. For comparison, its industry sports an average P/E of 18.28. Over the past year, CARR's Forward P/E has been as high as 18.03 and as low as 7.53, with a median of 14.37.

We should also highlight that CARR has a P/B ratio of 7.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CARR's current P/B looks attractive when compared to its industry's average P/B of 9.12. CARR's P/B has been as high as 7.83 and as low as 3.69, with a median of 5.72, over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Carrier Global Corporation is likely undervalued currently. And when considering the strength of its earnings outlook, CARR sticks out at as one of the market's strongest value stocks.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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