Buy-and-hold investors frequently buy blue-chip stocks. These are large-cap and mega-cap stocks that have mature business models. These are sometimes referred to as "sleep well stocks," because these stocks will be less volatile than the broader market. The idea is that what they lack in growth, they'll make up for in value, including paying reliable dividends. Yet even the most conservative investors should monitor emerging megatrends that could reshape the global economy over the next decade. In 2025, tha ...

Financial Data and Key Metrics Changes - Organic sales grew by 6% in Q3 2025, with segment margins expanding by 20 basis points to 17.6% [5][22] - Adjusted EPS increased by 11% year-over-year to $1.05, exceeding guidance [5][22] - Year-to-date adjusted free cash flow nearly doubled to $1.8 billion, with over 100% free cash flow conversion expected for the year [5][22] Business Line Data and Key Metrics Changes - Orders grew by 2%, with strength in The Americas offset by softness in China [6][23] - In the Americas, orders increased by 5%, while EMEA saw a 2% increase, and APAC experienced a decline [23][24] - Sales in the Americas rose by 7% organically, with EMEA growing by 4% and APAC by 6% [24][25] - The backlog grew by 11% to a record $14.6 billion, with both system and service backlogs increasing [6][26] Market Data and Key Metrics Changes - Orders in the Americas increased by 5%, while EMEA saw a 2% increase, and APAC orders declined [23][24] - The service business showed strong growth, particularly in EMEA with an 8% increase [24][25] - The data center market remains robust, contributing to healthy sales growth [94] Company Strategy and Development Direction - The company is focusing on customer centricity, operational efficiency, and innovation to drive growth [8][9] - A new business system is being implemented, emphasizing simplification, acceleration, and scaling through lean principles and digitization [12][13] - The company is evaluating its portfolio for potential acquisitions or exits to ensure sustainable growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core vertical markets remaining healthy despite challenges in China [64] - The company anticipates low single-digit organic sales growth for Q4 and is raising its full-year guidance for adjusted EPS and free cash flow [27][28] - There is a focus on improving operational efficiency and addressing growth blockers identified in various business lines [15][16] Other Important Information - The sale of the residential and light commercial HVAC business to Bosch is expected to close in Q4, with most net proceeds returned to shareholders [28] - The company is committed to returning 100% of free cash flow to shareholders through dividends and share repurchases [27][28] Q&A Session Summary Question: Initial observations and KPIs focus - Management highlighted the importance of sharpening customer focus and driving growth through innovation and R&D investments [30][32] Question: Accelerating growth in Fire and Security - Management sees potential for growth in Fire and Security, with plans to apply new business system principles to improve performance [41][44] Question: Free cash flow opportunities - Management noted strong cash flow performance driven by improved accounts receivable management and ongoing lean transformation efforts [47][49] Question: Order trends and long-term outlook - Management acknowledged ongoing softness in China but expressed confidence in healthy pipelines and core vertical markets [62][64] Question: Framework for 2026 and Investor Day plans - Management is working on 2026 plans and aims to provide a clearer long-term outlook as the year progresses [71][73]

FISCAL Q3 2025 Earnings Conference Call July 29, 2025 FORWARD-LOOKING AND CAUTIONARY STATEMENTS/NON-GAAP FINANCIAL INFORMATION Johnson Controls International plc cautionary statement regarding forward-looking statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meani ...

Core Viewpoint - Carrier Global (CARR) is expected to report a decline in both earnings and revenues for the first quarter of 2025, with earnings estimated at 57 cents per share, reflecting an 8.06% year-over-year decrease, and revenues projected at $5.11 billion, indicating a 17.4% decline [1]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for first-quarter earnings is 57 cents per share, unchanged over the past 30 days, suggesting a year-over-year decline of 8.06% [1]. - The Zacks Consensus Estimate for revenues is pegged at $5.11 billion, indicating a 17.4% year-over-year decline [1]. Group 2: Recent Performance Trends - Carrier Global has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.68% [2]. - The HVAC segment is expected to contribute to top-line growth, driven by strong demand for heating and cooling systems in residential and commercial applications [3]. Group 3: Segment Performance Insights - The Zacks Consensus Estimate for first-quarter 2025 HVAC revenues is $4.32 billion, indicating a decline of 4.87% year-over-year [4]. - Residential HVAC orders in North America increased approximately 10-15% year-over-year in Q4 2024, with global commercial HVAC orders also up 10%, trends likely to continue in Q1 [4]. - The aftermarket segment has shown consistent double-digit growth, expected to continue in the upcoming quarter [5]. Group 4: Market Opportunities and Challenges - The data center market is anticipated to grow significantly due to increased heat generation from AI chips, with Carrier Global aiming to capitalize on this growth [6]. - The integration of Viessmann Climate Solutions is expected to enhance Carrier's capabilities in heat pump technology and sustainable solutions [6]. - Weakness in Europe and China, along with softness in commercial refrigeration, is expected to negatively impact Carrier's performance in the upcoming quarter [7]. Group 5: Earnings Prediction Model - Carrier Global has an Earnings ESP of +0.63% and a Zacks Rank of 3, indicating a moderate chance of an earnings beat [8].

Core Insights - Trane Technologies (TT) is expected to report quarterly earnings of $2.19 per share, a 12.9% increase year-over-year, with revenues projected at $4.46 billion, reflecting a 5.8% year-over-year growth [1] Earnings Projections - The consensus EPS estimate has been revised down by 0.4% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Estimates - Analysts predict 'Revenues- Americas' will reach $3.59 billion, a year-over-year increase of 7.6% [5] - 'Revenues- EMEA' are expected to be $570.44 million, reflecting a 3.1% year-over-year growth [5] - 'Revenues- Asia Pacific' are forecasted at $307.53 million, indicating a year-over-year decline of 6% [5] Key Metrics - Total Bookings are estimated at $5.23 billion, compared to $5.07 billion in the same quarter last year [6] - 'Adjusted EBITDA- Americas' is projected to be $678.31 million, up from $604.80 million year-over-year [6] - 'Adjusted EBITDA- EMEA' is expected to reach $110.57 million, compared to $99.40 million last year [7] - 'Adjusted EBITDA- Asia Pacific' is forecasted at $68.72 million, down from $70.80 million year-over-year [7] Stock Performance - Trane Technologies shares have returned -1% over the past month, while the Zacks S&P 500 composite has seen a -4.8% change [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7]

Group 1: Johnson Controls - Johnson Controls is projected to generate approximately $4 billion in revenue from data centers in 2024, with an estimated total revenue of $23.4 billion in 2025, indicating that data centers could account for about 19% of its revenue in 2025 [3][4] - The company is experiencing growth in its data center orders, contributing to a growing backlog, while also focusing on retrofit opportunities in commercial buildings to enhance efficiency and meet net zero emissions goals [5] - Johnson Controls is currently trading at an attractive enterprise value to EBITDA ratio, making it a potential buy on dips [5] Group 2: nVent Electric - nVent Electric, which specializes in electrical protection and connections, is positioned to benefit from the electrification trend in various sectors, including smart buildings and data centers [6][7] - The company reported approximately $3 billion in sales from continuing operations in 2024, with data solutions contributing 20% or $600 million, and a 30% growth in data solutions sales, equating to an increase of $139 million [8][9] - nVent anticipates that its infrastructure end markets, particularly data centers, will drive growth with a low double-digit increase expected in 2025 [9] Group 3: GE HealthCare - GE HealthCare is enhancing its value proposition through the growth of AI-enabled solutions, particularly in imaging equipment, where it competes with Siemens Healthineers and Philips [12][13] - The company has expanded its AI-enabled authorizations from 58 to 85 in 2024, aiming to develop precision care solutions that leverage data from its imaging and patient monitoring equipment [14] - The integration of AI is expected to improve diagnostic and treatment capabilities, ultimately leading to better patient outcomes [15]