A move to invest more than expected in its non-capital investment, created an earnings miss for this building products and equipment company, but it looks like the investment will pay off as six analysts have just increased their earnings forecast for the company.
Carrier Global Corporation (CARR)
From Weiss Ratings
FedEx Corp (FDX) and United Parcel Service Inc. (UPS) were struggling to keep up with shipments — including some with COVID-19 vaccines.
Sure, those carriers are working to make sure the vaccines get to their destinations in time.
But this was a lightbulb for me.
Of course, there’s money to be made in the transportation of the vaccines!
You could go with investing in one of the two shippers that I mentioned above. If we check in with the ratings, your better bet would be UPS. The company is currently rated a “Buy”, while FedEx is currently a “Hold”.
Other key players in the logistics of transporting the vaccine are freezer box and dry ice manufacturers.
Pfizer Inc. (PFE) has specifically said that it will utilize GPS-enabled thermal sensors that will track the location and temperature of each vaccine shipment. The company has developed temperature-controlled thermal packaging and storage containers and add dry ice to maintain those low temperatures.
Once the vaccine reaches its destination, it needs to be transferred to an ultra-low temperature freezer where it can stay for six months. If that’s not possible, the dry ice can be replaced every five days for up to a month. And it can be refrigerated for only five days.
That’s the long way of saying it looks like there’s increased demand for freezer boxes and dry ice. So, let’s take a look at some publicly traded options.
Back in December, Carrier Global Corp. issued a press release that its brand, A&M Cold Storage, recently made available 90 “Carrier Pods monitored by Sensitech” to assist with the storage and movement of the vaccines.
This’s just one of the solutions Carrier offers through its “Healthy, Safe, Sustainable Cold Chain Program” which is designed to preserve and protect the supply of food and medicine.
These specific pods offer temperature control down to -40 Celsius. The dry ice can bring conditions all the way down to -95 Celsius.
This is not a new task for the company. And it wasted no time in stepping up to support the need.
Shares of the company are up 25% in the last six months and shares are still labeled a “Buy” according to the Weiss Ratings system.
Kelly Green, Weiss Ratings, Weiss Ratings, 1-877-934-7778, weissratings.com, February 18, 2021