These spinoffs continue to impress us

Article Excerpt

Both these firms continue to thrive since former parent company Raytheon Technologies (see page 18) spun them off as independent firms. Recent acquisitions also position them for more gains as the global economy rebounds from the COVID-19 pandemic and any coming recession. CARRIER GLOBAL CORP. $44 is a buy. The company (New York symbol CARR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 836.3 million; Market cap: $36.8 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.carrier.com) is a leading maker of heating, ventilation and air conditioning (HVAC) equipment. In April 2020, Raytheon Technologies Corp. (New York symbol RTX) set up Carrier and Otis (see right) as separate companies. For each Raytheon share they held, investors received 0.5 of a share in Otis and 1 share in Carrier. In January 2022, Carrier sold its Chubb Fire & Security business for $2.9 billion. Based in the U.K., Chubb makes burglar alarms and fire extinguishers. The company also increased its stake in a joint venture…