Have you been paying attention to shares of
Crown Holdings (? Shares have been on the move with the stock up 5.8% over the past month. The stock hit a new 52-week high of $130.42 in the previous session. Crown Holdings has gained 17.2% since the start of the year compared to the -5.6% move for the Zacks Industrial Products sector and the 4.5% return for the Zacks Containers - Metal and Glass industry. CCK Quick Quote CCK - Free Report) What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 8, 2022, Crown reported EPS of $1.66 versus consensus estimate of $1.54 while it beat the consensus revenue estimate by 9.22%.
For the current fiscal year, Crown is expected to post earnings of $8.19 per share on $12.83 billion in revenues. This represents a 6.92% change in EPS on a 7.76% change in revenues. For the next fiscal year, the company is expected to earn $9.40 per share on $13.37 billion in revenues. This represents a year-over-year change of 14.74% and 4.16%, respectively.
Crown may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Crown has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 15.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 11.3X. Additionally, the stock has a PEG ratio of 3.17. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Crown currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Crown fits the bill. Thus, it seems as though Crown shares could still be poised for more gains ahead.
How Does CCK Stack Up to the Competition?
Shares of CCK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is
Silgan Holdings Inc. (. SLGN has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F. SLGN Quick Quote SLGN - Free Report)
Earnings were strong last quarter. Silgan Holdings Inc. beat our consensus estimate by 8.22%, and for the current fiscal year, SLGN is expected to post earnings of $3.86 per share on revenue of $6.48 billion.
Shares of Silgan Holdings Inc. have gained 9.6% over the past month, and currently trade at a forward P/E of 11.98X and a P/CF of 8.05X.
The Containers - Metal and Glass industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CCK and SLGN, even beyond their own solid fundamental situation.