Carpenter Technology Corporation (NYSE:CRS) ranks among billionaire Stanley Druckenmiller’s 10 best stock picks. On January 29, Carpenter Technology Corporation (NYSE:CRS) reported second-quarter fiscal year 2026 earnings results, with an operating income of $155.2 million, a rise of 31% from $118.9 million in the second quarter of the previous year. Carpenter’s largest division, the Specialty Alloys Operations (SAO), delivered notable performance, with operating income of $174.6 million, up 29% from $13 ...

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PHILADELPHIA, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced that its Board of Directors has appointed Brian Malloy, currently President & Chief Operating Officer, to serve as Chief Executive Officer effective July 1, 2026. Tony Thene, currently Chairman and CEO, will continue as Executive Chairman of the Board, guiding strategy, maintaining key stakeholder relationships and providing Board leadership. “Over the last decade, Carpenter Technolog ...

Stock Performance - The stock experienced a significant increase in trading activity in January 2026, with a transaction volume of $470 million on January 27, representing a 59.25% increase from the previous day, and a price of $348.99, reflecting a cumulative increase of 10.85% for the month [2] - On January 8, the stock price saw a notable single-day decline of 5.37%, closing at $322.00, with a volatility of 7.30%, while the overall metal products industry declined by 1.67% during the same period, indicating market sensitivity to fundamental factors [2] Financial Performance and Strategy - For the third quarter of fiscal year 2025 (ending September 30, 2025), the company reported revenue of $734 million and a net profit of $123 million, marking a year-over-year growth of 44.7% [3] - The specialty alloys division performed exceptionally well, generating an operating profit of $171 million [3] - Future focus will be on the brownfield expansion project, with capital expenditures projected to reach between $280 million and $300 million in fiscal year 2026, aimed at enhancing smelting capacity to meet long-term demand in aerospace, defense, and energy markets [3] - The company is executing a $400 million stock repurchase plan, with approximately $249 million remaining as of September 30, 2025 [3] Industry and Risk Analysis - As of January 8, 89% of participating rating agencies recommended a "buy" rating for the company [4] - Financial forecasts indicate an expected annual revenue growth rate of 16.42% and an annual earnings per share growth rate of 90.18%, both exceeding industry averages [4] - Key risks to monitor include fluctuations in metal prices, adjustments in global supply chains, and the sustainability of demand in the aerospace sector [4]

Core Insights - The U.S. stock market's AI-driven bull run from 2023 to 2025 has continued into 2026, benefiting various sectors, particularly old-economy stocks in industrials, finance, auto, materials, and construction [1] Group 1: Investment Opportunities - Investing in old-economy stocks with a favorable Zacks Rank is expected to yield profits in 2026, providing opportunities for portfolio diversification [2] - Five old-economy stocks with strong earnings results and favorable Zacks Rank include Parker-Hannifin Corp. (PH), The Goldman Sachs Group Inc. (GS), GE Aerospace (GE), C.H. Robinson Worldwide Inc. (CHRW), and Carpenter Technology Corp. (CRS) [3] Group 2: Parker-Hannifin Corp. (PH) - Parker-Hannifin reported adjusted earnings of $7.65 per share for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate of $7.15, with total sales of $5.17 billion surpassing the consensus estimate of $5.04 billion [6] - The company benefits from steady demand in commercial and military markets, with a Win strategy driving margins and shareholder value [7][8] - Expected revenue and earnings growth rates for PH are 6.8% and 12.9%, respectively, for the current year, with a current dividend yield of 0.74% [11] Group 3: The Goldman Sachs Group Inc. (GS) - Goldman Sachs reported Q4 2025 earnings per share of $14.01, exceeding the Zacks Consensus Estimate of $11.77, while net revenues were $13.45 billion, slightly below the estimate of $13.61 billion [12] - The firm is focusing on its core strengths in investment banking and trading, with expansion in the private equity credit market expected to diversify revenue [14] - Expected revenue and earnings growth rates for GS are 8.6% and 10.3%, respectively, for the current year, with a current dividend yield of 1.70% [16] Group 4: GE Aerospace - GE Aerospace's Q4 adjusted earnings were $1.57 per share, beating the Zacks Consensus Estimate of $1.44, with adjusted revenues of $11.87 billion exceeding the estimate of $11.26 billion [17] - The company is experiencing strong demand for commercial engines and propulsion technologies, supported by rising defense budgets and robust air travel demand [18] - Expected revenue and earnings growth rates for GE are 13.8% and 17%, respectively, for the current year, with a current dividend yield of 0.45% [19] Group 5: C.H. Robinson Worldwide Inc. (CHRW) - C.H. Robinson reported Q4 2025 adjusted earnings of $1.23 per share, surpassing the Zacks Consensus Estimate of $1.12, while total revenues of $3.91 billion narrowly missed the estimate of $3.95 billion [20] - The company is focused on shareholder returns through dividends and share repurchases, with AI integration enhancing operational efficiency [22] - Expected revenue and earnings growth rates for CHRW are 3.9% and 15.9%, respectively, for the current year, with a current dividend yield of 1.26% [23] Group 6: Carpenter Technology Corp. (CRS) - Carpenter Technology reported adjusted earnings of $2.33 per share for Q2 fiscal 2026, beating the Zacks Consensus Estimate of $2.20, with net revenues of $728 million slightly below the estimate of $729 million [24] - The company is experiencing strong booking growth and robust demand in Aerospace and Defense, with a positive outlook supported by strategic acquisitions [26] - Expected revenue and earnings growth rates for CRS are 6.6% and 36.5%, respectively, for the current year, with a current dividend yield of 0.22% [27]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Carpenter Technology (CRS) - Carpenter Technology currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, CRS shares have increased by 14.88%, outperforming the Zacks Steel - Specialty industry, which rose by 10.19% [5] - In a longer timeframe, CRS shares have risen by 9.89% over the past quarter and 91.72% over the last year, while the S&P 500 has only increased by 3.73% and 16.78%, respectively [6] Trading Volume - CRS has an average 20-day trading volume of 973,766 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for CRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.07 to $10.21 [9] - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment regarding future earnings [9] Conclusion - Considering the positive momentum indicators and earnings outlook, CRS is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Key Takeaways CRS posted record Q2 operating income as revenues rose 7.5% and adjusted EPS increased year over year.Carpenter Technology raised FY26 operating income guidance to $680-$700M, signaling strong profit momentum.CRS saw strength in aerospace and defense, while medical and distribution end markets faced pressure.Carpenter Technology Corporation (CRS) reported solid second-quarter fiscal 2026 results, delivering year-over-year increases in its top and bottom lines. CRS’ shares have surged 92.4% ove ...

Company Performance - Carpenter Technology (CRS) shares have increased by 11.1% over the past month, reaching a new 52-week high of $370.59 [1] - Year-to-date, Carpenter has gained 16%, compared to 16.3% for the Zacks Basic Materials sector and 18.3% for the Zacks Steel - Specialty industry [1] Earnings and Revenue Expectations - Carpenter has consistently beaten earnings estimates, reporting EPS of $2.33 against a consensus estimate of $2.2 in its last earnings report [2] - For the current fiscal year, Carpenter is expected to post earnings of $10.2 per share on revenues of $3.07 billion, reflecting a 36.5% increase in EPS and a 6.59% increase in revenues [3] - For the next fiscal year, expected earnings are $12.13 per share on revenues of $3.37 billion, indicating year-over-year changes of 18.81% in EPS and 9.93% in revenues [3] Valuation Metrics - Carpenter's stock trades at 35.8 times current fiscal year EPS estimates, which is above the peer industry average of 19.1 times [7] - On a trailing cash flow basis, Carpenter trades at 35.1 times compared to the peer group's average of 13.8 times [7] - The stock has a PEG ratio of 1.44, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Carpenter currently holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of F, while its Growth and Momentum Scores are A and B, respectively, resulting in a VGM Score of B [6] Industry Comparison - Insteel Industries, Inc. (IIIN), a peer in the industry, also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, beating consensus estimates by 18.18% [10][11] - IIIN is expected to post earnings of $3.04 per share on revenues of $741 million for the current fiscal year, with shares gaining 10.4% over the past month [11] - The Steel - Specialty industry ranks in the bottom 69% of all industries, but there are positive tailwinds for both CRS and IIIN [12]

Core Viewpoint - Insteel Industries (IIIN) is currently viewed as a better value opportunity compared to Carpenter Technology (CRS) based on various valuation metrics and earnings outlooks [1]. Group 1: Zacks Rank and Earnings Outlook - Both IIIN and CRS have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3]. - The improving earnings outlook for both stocks provides a level of comfort for investors [3]. Group 2: Valuation Metrics - IIIN has a forward P/E ratio of 11.56, significantly lower than CRS's forward P/E of 33.21 [5]. - The PEG ratio for IIIN is 0.96, while CRS has a PEG ratio of 1.34, suggesting that IIIN may offer better value relative to its expected earnings growth [5]. - IIIN's P/B ratio stands at 1.9, compared to CRS's P/B of 8.5, further indicating that IIIN is undervalued [6]. - Based on these valuation figures, IIIN earns a Value grade of B, while CRS receives a Value grade of D [6].

Core Insights - Carpenter Technology Corporation (CRS) reported adjusted earnings of $2.33 per share for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.20 and significantly up from $1.66 in the same quarter last year, driven by product mix improvements and operational efficiencies [1][9] - Net revenues increased by 7.5% year over year to $728 million, slightly missing the Zacks Consensus Estimate of $729 million [2][9] - The company expects operating income for fiscal 2026 to be in the range of $680-$700 million, an increase from the previously stated $660-$700 million [10] Revenue Performance - Aerospace and Defense market revenues increased by 15.3% year over year, while Energy market revenues rose by 19.3%. However, Medical market revenues decreased by 22.3%, and Distribution market revenues fell by 14.1%. Industrial and Consumer markets saw a revenue increase of 10.1%, while Transportation market revenues dropped by 19.2% [3] - The cost of goods sold rose by 2.1% year over year to $510 million, with gross profit increasing by 23% to $218 million, resulting in a gross margin of 30%, up from 26.2% in the prior year [3] Operational Results - Adjusted operating income reached a record $155 million, compared to $119 million in the prior year, with an adjusted operating margin of 21.3%, up from 17.6% [4][9] - Specialty Alloys Operations segment reported sales of $662 million, up from $602 million year over year, but below the estimated $672 million. The segment's operating profit was $175 million, exceeding the estimate of $171 million [5] - Performance Engineered Products segment saw a 12.4% decline in net sales to $83 million, missing the estimate of $99 million, with an operating profit of $6.9 million, down 1.4% year over year [6] Cash Flow and Balance Sheet - At the end of Q2 fiscal 2026, cash and cash equivalents were $232 million, down from $315.5 million at the end of fiscal 2025. Long-term debt decreased slightly to $690 million from $695 million [7] - Cash flow from operating activities was $132 million in the quarter, compared to $68 million in the prior year [7] Share Price Performance - CRS shares have surged by 66.9% over the past year, compared to the industry's growth of 72.6% [11]