Softer Demand Trends and Ongoing Dealer Destocking Affected Carrier Global Corporation (CARR) in Q3

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index continued its rally in the third quarter, ending the year-to-date returns at 13.7%. During this period, growth and momentum were key contributors to the market's performance. A significant portion of the market is currently tied to the single catalyst of AI deployment, which means that any weaknesses in this concept could significantly threaten the market's future strength. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Growth & Income 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 -0.42%, and its shares gained 25.43% of their value over the last 52 weeks. On November 11, 2025, Carrier Global Corporation (NYSE:CARR) stock closed at $56.97 per share, with a market capitalization of $47.981 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Carrier Global Corporation (NYSE:CARR) in its third quarter 2025 investor letter:

"Carrier Global Corporation's (NYSE:CARR) shares underperformed this quarter as management lowered its residential heating, ventilation, and air conditioning (HVAC) guidance, pointing to softer demand trends and ongoing dealer destocking. The reset overshadowed steadier results in Carrier’s commercial HVAC and aftermarket segments as investors focused on the residential channel’s outsized impact on near-term earnings and the risk of the slowdown lingering into next season."

Carrier Global Corporation (NYSE:CARR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 53 hedge fund portfolios held Carrier Global Corporation (NYSE:CARR) at the end of the second quarter, compared to 54 in the previous quarter. In the third quarter of 2025, Carrier Global Corporation's (NYSE:CARR) reported sales were $5.6 billion. While we acknowledge the potential of Carrier Global Corporation (NYSE:CARR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Carrier Global Corporation (NYSE:CARR) and shared the list of Jim Cramer talked recently. 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.