Carrier Global (CARR) Sold Off Due to Guidance Cut

Impax Asset Management, an investment management company, released its “Impax Global Environmental Markets Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities saw strong gains in Q3 2025, driven by solid macroeconomic conditions, rising corporate earnings, fiscal stimulus, and banking deregulation. However, the focus on hypergrowth, cyclical, and value stocks posed challenges for quality-focused investors, leading to increased market concentration. The portfolio moved higher, returning 4.55% in the quarter, but underperformed its primary benchmark, the MSCI ACWI index, which returned 7.62%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Impax Global Environmental Markets Fund highlighted stocks such as Carrier Global Corporation (NYSE:CARR). Carrier Global Corporation (NYSE:CARR) is an intelligent climate and energy solutions provider that operates through Heating, Ventilating, and Air Conditioning (HVAC) and Refrigeration. The one-month return of Carrier Global Corporation (NYSE:CARR) was -1.58%, and its shares lost 22.97% of their value over the last 52 weeks. On December 24, 2025, Carrier Global Corporation (NYSE:CARR) stock closed at $53.50 per share, with a market capitalization of $45.53 billion.

Impax Global Environmental Markets Fund stated the following regarding Carrier Global Corporation (NYSE:CARR) in its third quarter 2025 investor letter:

“Carrier Global Corporation (NYSE:CARR) (Buildings Energy Efficiency, US) sold off in Q3 as weaker US residential heating, ventilation and air conditioning (HVAC) volumes led to a material guidance cut. Despite a softer demand outlook, the team believes that Carrier remains an attractively priced business positioned to benefit from improved end-market demand nearing cyclical lows.”

Wells Fargo and JPMorgan Cut Carrier (CARR) Price Targets After Weak Q3

Carrier Global Corporation (NYSE:CARR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held Carrier Global Corporation (NYSE:CARR) at the end of the third quarter, compared to 53 in the previous quarter. While we acknowledge the risk and potential of Carrier Global Corporation (NYSE:CARR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Carrier Global Corporation (NYSE:CARR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Carrier Global Corporation (NYSE:CARR) and shared the list of data center cooling companies to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.