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Here's Why You Should Retain Carpenter Technology Stock for Now
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Key Takeaways
CRS is positioned for strong booking growth, driven by robust demand in Aerospace and Defense markets.
Estimates for CRS for 2026 indicate $10.07 EPS and $3.07B revenues, with one upward revision in 30 days.
CRS expects operating income to be $660-$700M in fiscal 2026.
Carpenter Technology Corporation (CRS - Free Report) is positioned for strong booking growth from robust demand, especially in Aerospace and Defense. Over the past year, shares of CRS have grown 74.8%, outperforming the industry’s 59.9% rise.
Image Source: Zacks Investment Research
CRS provides premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels and tool steels, as well as drilling tools. The company provides solutions for critical applications across diversified end-use markets - Aerospace and Defense, Energy, Transportation, Medical, Industrial and Consumer and Distribution.
This stock is worth retaining at the moment due to the positive prospects.
Where Do Estimates for CRS Stand?
The Zacks Consensus Estimate for CRS’ fiscal 2026 earnings is pegged at $10.07 per share, indicating a 34.63% year-over-year rise. In the past 30 days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $3.07 billion for fiscal 2026. The company beat earnings estimates in each of the past four quarters. CRS carries a Value Score of D.
CRS’ Growth Drivers
The momentum in CRS' stock price has been fueled by strong demand in the Aerospace and Defense sectors and supportive industry trends. The company has experienced significant booking growth over the past few quarters, backed by substantial backlog levels and a favorable outlook for its end-use markets. As global travel recovers, demand for aerospace continues to rise, leading to increased production of aircraft in commercial and engine submarkets. In the Defense sector, CRS is gaining benefits from increased investments in advanced platforms and programs.
Positive macroeconomic trends in aerospace production and the demand for specialty materials have strengthened earnings. The company has improved its profitability by transitioning to higher-value, complex alloys, boosting operational efficiencies, and implementing pricing strategies in a favorable pricing environment. Management anticipates an operating income of $660-$700 million in fiscal 2026, which suggests approximately 30% year-over-year growth.
The company's Carpenter Electrification brands enhance growth prospects in soft magnetics solutions. In order to take advantage of the growth in additive manufacturing, the business completed the construction of an emerging technology center in Athens, AL, and expanded its additive portfolio by acquiring CalRam and Puris.
Key Concerns for Carpenter Technology
There are a few factors that investors should keep an eye on.
Labor constraints and supply chain interruptions continue to pose challenges for Carpenter Technology. Production schedules are being impacted by persistent logistical issues, longer lead times for some products, and delays in the availability of contractors. Due to decreased drilling activity in North America and geopolitical unrest, the oil and gas submarket is also experiencing an imbalance. U.S. activity levels are still below pre-pandemic levels even if they are beginning to improve.
On valuation, CRS trades at a forward 12-month price-to-sales ratio of 4.86X, above the industry average of 1.48X.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.87 per share, indicating a rise of 86.05%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 109.1% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 fiscal-year earnings is pinned at $1.68 per share, indicating a 147.06% year-over-year increase. Its shares have surged 187.9% over the past year.
The Zacks Consensus Estimate for HMY’s current fiscal-year earnings is pinned at $2.68 per share, indicating a 111.02% year-over-year increase.HMY’s shares have gained 138.7% over the past year.
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Here's Why You Should Retain Carpenter Technology Stock for Now
Key Takeaways
Carpenter Technology Corporation (CRS - Free Report) is positioned for strong booking growth from robust demand, especially in Aerospace and Defense. Over the past year, shares of CRS have grown 74.8%, outperforming the industry’s 59.9% rise.
Image Source: Zacks Investment Research
CRS provides premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels and tool steels, as well as drilling tools. The company provides solutions for critical applications across diversified end-use markets - Aerospace and Defense, Energy, Transportation, Medical, Industrial and Consumer and Distribution.
This stock is worth retaining at the moment due to the positive prospects.
Where Do Estimates for CRS Stand?
The Zacks Consensus Estimate for CRS’ fiscal 2026 earnings is pegged at $10.07 per share, indicating a 34.63% year-over-year rise. In the past 30 days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $3.07 billion for fiscal 2026. The company beat earnings estimates in each of the past four quarters. CRS carries a Value Score of D.
CRS’ Growth Drivers
The momentum in CRS' stock price has been fueled by strong demand in the Aerospace and Defense sectors and supportive industry trends. The company has experienced significant booking growth over the past few quarters, backed by substantial backlog levels and a favorable outlook for its end-use markets. As global travel recovers, demand for aerospace continues to rise, leading to increased production of aircraft in commercial and engine submarkets. In the Defense sector, CRS is gaining benefits from increased investments in advanced platforms and programs.
Positive macroeconomic trends in aerospace production and the demand for specialty materials have strengthened earnings. The company has improved its profitability by transitioning to higher-value, complex alloys, boosting operational efficiencies, and implementing pricing strategies in a favorable pricing environment. Management anticipates an operating income of $660-$700 million in fiscal 2026, which suggests approximately 30% year-over-year growth.
The company's Carpenter Electrification brands enhance growth prospects in soft magnetics solutions. In order to take advantage of the growth in additive manufacturing, the business completed the construction of an emerging technology center in Athens, AL, and expanded its additive portfolio by acquiring CalRam and Puris.
Key Concerns for Carpenter Technology
There are a few factors that investors should keep an eye on.
Labor constraints and supply chain interruptions continue to pose challenges for Carpenter Technology. Production schedules are being impacted by persistent logistical issues, longer lead times for some products, and delays in the availability of contractors. Due to decreased drilling activity in North America and geopolitical unrest, the oil and gas submarket is also experiencing an imbalance. U.S. activity levels are still below pre-pandemic levels even if they are beginning to improve.
On valuation, CRS trades at a forward 12-month price-to-sales ratio of 4.86X, above the industry average of 1.48X.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
CRS’ Zacks Rank & Key Picks
CRS currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .
At present, AEM and KGF sport a Zacks Rank #1 (Strong Buy) each, while HMY carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.87 per share, indicating a rise of 86.05%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 109.1% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 fiscal-year earnings is pinned at $1.68 per share, indicating a 147.06% year-over-year increase. Its shares have surged 187.9% over the past year.
The Zacks Consensus Estimate for HMY’s current fiscal-year earnings is pinned at $2.68 per share, indicating a 111.02% year-over-year increase.HMY’s shares have gained 138.7% over the past year.