Carpenter Technology Corporation (CRS) Hit a 52 Week High, Can the Run Continue?

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]