For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Carpenter Technology (CRS) ten years ago? It may not have been easy to hold on to CRS for all that time, but if you did, how much would your investment be worth today?
Carpenter Technology's Business In-Depth
With that in mind, let's take a look at Carpenter Technology's main business drivers.
Philadelphia, PA-based Carpenter Technology Corporation is a producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels as well as drilling tools. The company’s provides solutions for critical applications across diversified end-use markets - Aerospace and Defense (accounting for around 54% of the company’s revenues), Energy (8%), Transportation (7%), Medical (9%), Industrial and Consumer (14%) and Distribution (6%).
The company is a leader in premium specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive manufacturing (AM) processes and soft magnetics applications. It has expanded AM capabilities to provide a complete “end-to-end” solution to accelerate materials innovation and streamline parts production. The company primarily processes basic raw materials such as nickel, cobalt, titanium, manganese, chromium, molybdenum, iron scrap and other metal alloying elements through various melting, hot forming and cold working facilities to produce finished products in the form of billet, bar, rod, wire and narrow strip in many sizes and finishes. It also produces certain metal powders and parts.
The company has two reportable segments-Specialty Alloys Operations (SAO) - (approximately 82% of revenues in fiscal 2022) - is comprised of the company’s major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, PA and surrounding areas as well as South Carolina and Alabama.
Performance Engineered Products (approximately 18% of revenues in fiscal 2022) includes the company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the CalRAM business, the LPW business and the Latrobe and Mexico distribution businesses.
On May 14, 2019 Carpenter Technology announced the formation of its Carpenter Additive business unit. Carpenter Additive’s capabilities span from powder production to manufacturing and finishing which differentiates it from the rest of the AM industry.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Carpenter Technology ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in October 2014 would be worth $3,681.11, or a 268.11% gain, as of October 9, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 192.10% and the price of gold increased 106.32% over the same time frame in comparison.
Going forward, analysts are expecting more upside for CRS.
Carpenter Technology’s backlog was at record levels in the fourth quarter of fiscal 2024, indicating strong demand. The company’s fiscal 2025 results are expected to reflect the impacts of the ongoing momentum across its end-use markets. Its financial position has been strong, providing it with the flexibility to invest in the emerging technologies of additive manufacturing and soft magnetics. Carpenter Technology’s cost-reduction initiatives are also anticipated to boost its margins. The company’s portfolio realignments are expected to deliver savings. Backed by record backlog levels, its near and long-term outlooks for each end-use market remained positive. CRS’s strategic acquisitions will boost its performance in the upcoming quarters. Earnings estimates for fiscal 2025 have undergone positive revisions lately.
Shares have gained 19.24% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.5 Stocks Set to Double
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Today, See These 5 Potential Home Runs >>Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
