Crane Co. (CR - Free Report) is well-poised for growth on the back of strength across its end markets, solid product portfolio, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $5.6 billion. In the past three months, it has gained 10.1% compared with the industry’s growth of 6.4%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Solid End Markets: Crane has been benefiting from improving order trends across several of its businesses, including short-cycle commercial and core processes. In the quarters ahead, the company anticipates strength across its businesses in chemical, general industrial, military, non-residential construction, municipal and most vertical end markets to drive the top-line performance. For 2021, it anticipates overall sales to be $3,100 million, compared with the previously guided $3,015 million.
Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. In the first six months of 2021, it acquired the business of Instrumentation & Sampling, which boosted the Process Flow Technologies segment’s sales by 1% on a year-over-year basis. For 2021, the company expects acquisitions to drive sales by $5 million.
Strong Cash Flows & Rewards to Shareholders: Crane’s ability to generate strong cash flows adds to its strength. In the first six months of 2021, the company generated strong free cash flow of $183.6 million. For 2021, its free cash flow is anticipated in the range of $320 million to $350 million. In the first half of 2021, its dividend payments were $50.2 million. In January 2020, it announced a 10% hike in its quarterly dividend rate.
Initiatives to Spur Growth: The company’s repositioning actions and focus on operational execution are likely to continue driving its performance in the quarters ahead. Its repositioning actions delivered a net restructuring gain of $13.3 million in the first six months of 2021.
Estimate Trend: In the past 60 days, the Zacks Consensus Estimate for its 2021 earnings has trended up from $5.76 to $6.13 on two upward estimate revisions against none downward. In the same time frame, the consensus mark for 2022 earnings has increased from $7.03 to $7.10 on three upward estimate revisions against none downward.
Other Key Picks
Some other top-ranked stocks from the same space are Raven Industries, Inc. , Carlisle Companies Incorporated (CSL - Free Report) and Danaher Corporation (DHR - Free Report) . While Raven currently sports a Zacks Rank #1 (Strong Buy), Carlisle and Danaher carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven has a trailing four-quarter earnings surprise of 42.59%, on average.
Carlisle has a trailing four-quarter earnings surprise of 39.38%, on average.
Danaher has a trailing four-quarter earnings surprise of 27.52%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Crane Co. (CR - Free Report) is well-poised for growth on the back of strength across its end markets, solid product portfolio, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $5.6 billion. In the past three months, it has gained 10.1% compared with the industry’s growth of 6.4%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Solid End Markets: Crane has been benefiting from improving order trends across several of its businesses, including short-cycle commercial and core processes. In the quarters ahead, the company anticipates strength across its businesses in chemical, general industrial, military, non-residential construction, municipal and most vertical end markets to drive the top-line performance. For 2021, it anticipates overall sales to be $3,100 million, compared with the previously guided $3,015 million.
Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. In the first six months of 2021, it acquired the business of Instrumentation & Sampling, which boosted the Process Flow Technologies segment’s sales by 1% on a year-over-year basis. For 2021, the company expects acquisitions to drive sales by $5 million.
Strong Cash Flows & Rewards to Shareholders: Crane’s ability to generate strong cash flows adds to its strength. In the first six months of 2021, the company generated strong free cash flow of $183.6 million. For 2021, its free cash flow is anticipated in the range of $320 million to $350 million. In the first half of 2021, its dividend payments were $50.2 million. In January 2020, it announced a 10% hike in its quarterly dividend rate.
Initiatives to Spur Growth: The company’s repositioning actions and focus on operational execution are likely to continue driving its performance in the quarters ahead. Its repositioning actions delivered a net restructuring gain of $13.3 million in the first six months of 2021.
Estimate Trend: In the past 60 days, the Zacks Consensus Estimate for its 2021 earnings has trended up from $5.76 to $6.13 on two upward estimate revisions against none downward. In the same time frame, the consensus mark for 2022 earnings has increased from $7.03 to $7.10 on three upward estimate revisions against none downward.
Other Key Picks
Some other top-ranked stocks from the same space are Raven Industries, Inc. , Carlisle Companies Incorporated (CSL - Free Report) and Danaher Corporation (DHR - Free Report) . While Raven currently sports a Zacks Rank #1 (Strong Buy), Carlisle and Danaher carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven has a trailing four-quarter earnings surprise of 42.59%, on average.
Carlisle has a trailing four-quarter earnings surprise of 39.38%, on average.
Danaher has a trailing four-quarter earnings surprise of 27.52%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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