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Strength Seen in Carpenter (CRS): Can Its 6.5% Jump Turn into More Strength?

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Carpenter Technology (CRS - Free Report) shares soared 6.5% in the last trading session to close at $68.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 10.6% gain over the past four weeks.

Fundamental/tangible driver (s) to be added by AnalystCarpenter Technology’s shares have jumped as an analyst at Benchmark has increased the target price from $65.00 to $100.00 and maintained a buy rating on the stock.  The raised target price represents 56% upside from CRS’s closing price on Sep 12, 2023.

This maker of stainless steels and special alloys is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +635.7%. Revenues are expected to be $701.97 million, up 34.2% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Carpenter, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CRS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Carpenter belongs to the Zacks Steel - Speciality industry. Another stock from the same industry, Allegheny Technologies (ATI - Free Report) , closed the last trading session 2.1% lower at $43.73. Over the past month, ATI has returned 3.8%.

Allegheny Technologies' consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $0.53. Compared to the company's year-ago EPS, this represents no change. Allegheny Technologies currently boasts a Zacks Rank of #3 (Hold).


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