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Crane Holdings Co. (CR - Free Report) has been benefiting from strength in its end markets, including general industrial, chemical and pharmaceutical. Solid momentum in the company's commercial original equipment and aftermarket businesses has been driving its performance of late. Also, its efficient management team, investment in technology, efforts to develop products, improving order trends and a focus on commercial excellence have been proving beneficial. For 2022, its core sales are predicted to grow in the range of 4-6% year over year.
Divestment of non-core assets or businesses is likely to be advantageous for the company. In May 2022, the company divested its Crane Supply business for CAD 380 million. The divestment will likely enable CR to better focus on and efficiently direct resources to its Process Flow Technologies businesses. Also, the company’s decision to sell its Engineered Materials segment (announced in May 2021) is expected to allow it to concentrate on its core businesses.
Crane remains committed to rewarding its shareholders through dividend payments and share repurchases. In the first three months of 2022, CR paid out dividends worth $26.7 million and repurchased shares worth $175.8 million. In January 2022, it hiked the quarterly dividend rate by 9%. It is worth noting that in April 2022, CR completed its share repurchase program worth $300 million.
However, rising costs and operating expenses remain a concern for CR. In the first quarter, its cost of sales increased 0.7% on a year-over-year basis, while selling, general and administrative expenses jumped 14.6%. Inflationary pressures, supply-chain disturbances and pandemic impacts were spoilsports in the quarter. These issues are expected to persist in the near term.
Given its extensive presence across the international markets, the company remains vulnerable to foreign-exchange headwinds and geopolitical issues. Crane expects forex woes to adversely impact sales by 1.5% in 2022.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) stock has lost 15.1% compared with the industry’s decline of 19%.
Stocks to Consider
Some better-ranked companies from the Zacks Industrial Products sectors are discussed below.
IDEX’s earnings estimates have increased 1.9% for 2022 in the past 60 days. Its shares have declined 23.3% in the past six months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 0.4% for 2022. The stock has declined 20.1% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 12.6%.
In the past 60 days, Ferguson’s earnings estimates have increased 10.6% for fiscal 2022 (ending July 2022). FERG’s shares have lost 36.4% in the past three months.
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Crane (CR) Displays Bright Prospects, Headwinds Persist
Crane Holdings Co. (CR - Free Report) has been benefiting from strength in its end markets, including general industrial, chemical and pharmaceutical. Solid momentum in the company's commercial original equipment and aftermarket businesses has been driving its performance of late. Also, its efficient management team, investment in technology, efforts to develop products, improving order trends and a focus on commercial excellence have been proving beneficial. For 2022, its core sales are predicted to grow in the range of 4-6% year over year.
Divestment of non-core assets or businesses is likely to be advantageous for the company. In May 2022, the company divested its Crane Supply business for CAD 380 million. The divestment will likely enable CR to better focus on and efficiently direct resources to its Process Flow Technologies businesses. Also, the company’s decision to sell its Engineered Materials segment (announced in May 2021) is expected to allow it to concentrate on its core businesses.
Crane remains committed to rewarding its shareholders through dividend payments and share repurchases. In the first three months of 2022, CR paid out dividends worth $26.7 million and repurchased shares worth $175.8 million. In January 2022, it hiked the quarterly dividend rate by 9%. It is worth noting that in April 2022, CR completed its share repurchase program worth $300 million.
However, rising costs and operating expenses remain a concern for CR. In the first quarter, its cost of sales increased 0.7% on a year-over-year basis, while selling, general and administrative expenses jumped 14.6%. Inflationary pressures, supply-chain disturbances and pandemic impacts were spoilsports in the quarter. These issues are expected to persist in the near term.
Given its extensive presence across the international markets, the company remains vulnerable to foreign-exchange headwinds and geopolitical issues. Crane expects forex woes to adversely impact sales by 1.5% in 2022.
Image Source: Zacks Investment Research
In the past six months, this Zacks Rank #3 (Hold) stock has lost 15.1% compared with the industry’s decline of 19%.
Stocks to Consider
Some better-ranked companies from the Zacks Industrial Products sectors are discussed below.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank #2 (Buy). IEX delivered a trailing four-quarter earnings surprise of 2.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEX’s earnings estimates have increased 1.9% for 2022 in the past 60 days. Its shares have declined 23.3% in the past six months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 0.4% for 2022. The stock has declined 20.1% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 12.6%.
In the past 60 days, Ferguson’s earnings estimates have increased 10.6% for fiscal 2022 (ending July 2022). FERG’s shares have lost 36.4% in the past three months.