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Carrier (CARR) Boosts Fire & Security Offering With Latest Deal

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Carrier Global’s (CARR - Free Report) electronics access solutions brand, Onity, announced the integration of its Passport Locking Solution with Storable's SiteLink and storEdge facility management systems.

This partnership with Storable, a prominent software provider in the self-storage sector, will enhance tenant experience by facilitating easy access and management of Passport self-storage unit smart locks.

Moreover, this integration will allow tenants to access Onity Passport locks via mobile credentials, simplifying the tenant onboarding process with a single tap on a mobile app.

We mark this collaboration as Carrier’s growing efforts toward strengthening its Fire & Safety segment’s portfolio offerings.

Growth Prospects

The latest move is likely to strengthen Carrier’s footprint in the global access control systems market, as well as the security market.

Per a Mordor Intelligence report, the access control systems market is expected to hit $3.26 billion in 2023 and reach $4.81 billion by 2028, witnessing a CAGR of 8.1% between 2023 and 2028.

A Grand View Research report indicates that the global security market size is anticipated to grow at a CAGR of 8% during the period of 2023-2030.

We believe that growing prospects in these booming markets are likely to instill investors’ optimism in the stock.

Carrier has gained 39.3% on a year-to-date basis, outperforming the industry’s growth of 20.7%.

Expanding Fire & Security Portfolio

Apart from the latest move, LenelS2, Carrier's physical security solutions brand, introduced improved features for its Elements platform, enhancing maintenance efficiency, reducing cyber risk, increasing scalability, and lowering ownership costs.

Additionally, Carrier introduced three HomeSafe-enabled devices for its Kiddie brand, enabling customers to receive immediate notifications of home safety threats like smoke and Indoor Air Quality issues.

Also, Supra, Carrier’s real estate digital solutions brand, has recently integrated scheduling and lockbox access into its BrokerBay-powered showing management tool, offering a modern, intuitive user experience.

The abovementioned endeavors will continue to aid the performance of the Fire & Security segment in the near term.

In the second quarter of 2023, the company reported Fire & Security revenues of $932 million, reflecting year-over-year growth of 5.1%.

We believe that the company's overall financial performance and future growth prospects are likely to be enhanced by its strength in the underlined segment.

For 2023, Carrier expects revenues to be $22 billion. The Zacks Consensus Estimate for the same is pegged at $22.34 billion, indicating year-over-year growth of 9.38%.

Zacks Rank & Other Stocks to Consider

Currently, Carrier carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader technology sector are Asure Software (ASUR - Free Report) , Applied Materials (AMAT - Free Report) and Adobe (ADBE - Free Report) . While Asure Software and Applied Materials sport a Zacks Rank #1 (Strong Buy) each, Adobe carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software shares have gained 34.3% in the year-to-date period. ASUR’s long-term earnings growth rate is currently projected at 27%.

Applied Materials shares have gained 56.9% in the year-to-date period. The long-term earnings growth rate for AMAT is currently projected at 6.1%

Adobe shares have gained 66.2% in the year-to-date period. ADBE’s long-term earnings growth rate is currently projected at 13.27%.

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