Jim Cramer’s Game Plan: 23 Stocks to Watch

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16. Carrier Global Corporation (NYSE:CARR)

Number of Hedge Fund Holders: 45

Cramer expects strong earnings from Carrier Global Corporation (NYSE:CARR) which will be announced on October 24.

“There was a time when people seemed to ignore the success of David Gitlin at Carrier. Not anymore, you can’t. The stock’s getting its due. It’s now had such a big run that this climate control player may not pop on the earnings numbers, but I sure think they’re going to be strong.”

Carrier Global (NYSE:CARR) provides technologies related to heating, ventilation, air conditioning (HVAC), refrigeration, fire protection, and security solutions, with a global presence. Recently, the company has embarked on a significant transformation journey aimed at becoming a more focused and agile organization, committed to sustainability and higher growth.

In August, the company entered into a definitive agreement to divest its Commercial and Residential Fire business to an affiliate of Lone Star Funds for an enterprise value of $3 billion. The agreement shows a strategic effort to streamline operations, with Chairman and CEO David Gitlin noting that all recent divestitures were executed swiftly, culminating in a total value exceeding $10 billion. He said that it represents a strong mid-teens EBITDA multiple overall, emphasizing the value generated from these transactions.

On October 2, Carrier Global (NYSE:CARR) announced the completion of the sale of its commercial refrigeration business to Haier, its long-term joint venture partner, for an enterprise value of $775 million, which includes around $200 million in net pension liabilities.

The divestiture, along with the completed sales of the Industrial Fire and Global Access Solutions businesses, marks a significant step in Carrier’s portfolio transformation. Gitlin highlighted that three out of four announced business exits have been finalized, with the sale of the Commercial and Residential Fire business expected to conclude by the end of 2024.

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