Investors with an interest in Steel - Speciality stocks have likely encountered both Insteel Industries (IIIN) and Carpenter Technology (CRS) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimat ...

Carpenter Technology Corporation ( CRS ) is experiencing durable market dynamics as a result of the tight supply of the nickel-based superalloy market, driven by increasing demand within the aerospace & defense industry. With limited suppliers and volumes produced, CRS has experienced substantial pricing power forMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investmen ...

Core Insights - Commercial Metals Company (CMC) and Carpenter Technology Corporation (CRS) are two prominent steel stocks with significant market presence, and an analysis is conducted to determine which stock is better positioned for growth [1] Group 1: Commercial Metals Company (CMC) - In Q1 of fiscal 2026, CMC reported revenues of $2.12 billion, reflecting an 11% year-over-year growth driven by strong demand in the North America Steel Group and Construction Solutions Group [2] - CMC's earnings per share surged to $1.84, marking a 142% increase year-over-year [3] - The company completed two major acquisitions in December 2025, which are expected to enhance results in Q2 of fiscal 2026 and position CMC as a leading player in the Mid-Atlantic and Southeastern regions [4] - CMC anticipates operational synergies of $25-$30 million from the acquisitions by year three, although it will incur acquisition-related expenses in Q2 of fiscal 2026 [5] - The Transform, Advance, Grow Program launched in September 2024 is expected to yield an annualized EBITDA benefit of $150 million for fiscal 2026 [6] Group 2: Carpenter Technology Corporation (CRS) - CRS reported revenues of $728 million for Q2 of fiscal 2026, a 7.5% year-over-year increase, with adjusted earnings of $2.33 per share, up from $1.66 in the previous year [7] - The Specialty Alloys Operations segment saw revenue growth due to Aerospace and Defense and Energy markets, while Performance Engineered Products faced challenges from Medical and Distribution markets [8] - CRS expects operating income of $680-$700 million for fiscal 2026, indicating a 31% year-over-year growth at the midpoint [9] - The stock has gained 93% over the past year, and CRS anticipates achieving $765-$800 million in operating income by 2027, reflecting a 25% compound annual growth rate compared to fiscal 2025 [10][11] - CRS is investing in a $400 million brownfield expansion project to enhance its high-purity melt capacity, which is on schedule and budget [13] Group 3: Earnings Estimates and Valuation - The Zacks Consensus Estimate for CMC's fiscal 2026 earnings is $7.34 per share, indicating a 134.5% year-over-year growth, while the estimate for 2027 suggests a slight dip of 1.5% [14] - For CRS, the earnings estimate for fiscal 2026 is $10.28 per share, suggesting a 37.4% year-over-year increase, with a 2027 estimate of $12.13 indicating 17.9% growth [14] - CMC is trading at a forward earnings multiple of 10.38X, lower than its five-year median, while CRS trades at 33.51X, higher than its five-year median [19] Group 4: Investment Outlook - Both CMC and CRS are positioned to benefit from growth and recent investments, but CRS has shown stronger price performance and a more favorable outlook [21] - CRS holds a Zacks Rank 2 (Buy), while CMC has a Zacks Rank 3 (Hold), indicating a preference for CRS as the better investment option at this time [22]

Key Takeaways CRS is investing $400M to add 9,000 tons of melt capacity via a brownfield expansion in Athens.The project was on schedule in 2Q26, with commissioning targeted for early FY28.Carpenter Technology expects earnings growth, but no material impact on the supply-demand imbalance.Carpenter Technology Corporation (CRS) is investing in a $400-million brownfield expansion project based in Athens. The project is aimed at adding high-purity primary and secondary melt capacity to the company’s existing do ...

Carpenter Technology Corporation (NYSE:CRS) ranks among billionaire Stanley Druckenmiller’s 10 best stock picks. On January 29, Carpenter Technology Corporation (NYSE:CRS) reported second-quarter fiscal year 2026 earnings results, with an operating income of $155.2 million, a rise of 31% from $118.9 million in the second quarter of the previous year. Carpenter’s largest division, the Specialty Alloys Operations (SAO), delivered notable performance, with operating income of $174.6 million, up 29% from $13 ...

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Core Viewpoint - Carpenter Technology Corporation has appointed Brian Malloy as the new CEO effective July 1, 2026, while Tony Thene transitions to Executive Chairman, ensuring continuity in leadership and strategic oversight [1][4]. Leadership Transition - Brian Malloy, currently the President & COO, has been with Carpenter Technology for 10 years and has played a significant role in the company's growth and strategic direction [3]. - Tony Thene, the current Chairman and CEO, will continue to guide the company's strategy and maintain key stakeholder relationships as Executive Chairman [1][2]. Management Strength - The Board of Directors emphasizes the strength and depth of the management team, highlighting Brian Malloy's operational expertise and proven leadership as essential for guiding the company forward [4]. - Malloy's leadership is expected to build on the existing strategic vision that has driven the company's growth, focusing on delivering value to customers in high-value markets [3][4]. Company Background - Carpenter Technology Corporation is a leader in high-performance specialty alloy materials and process solutions, serving critical applications in various sectors including aerospace, defense, medical, and energy [5]. - The company has a long history, founded in 1889, and is recognized for its premium specialty alloys such as nickel, cobalt, and titanium [5].

Stock Performance - The stock experienced a significant increase in trading activity in January 2026, with a transaction volume of $470 million on January 27, representing a 59.25% increase from the previous day, and a price of $348.99, reflecting a cumulative increase of 10.85% for the month [2] - On January 8, the stock price saw a notable single-day decline of 5.37%, closing at $322.00, with a volatility of 7.30%, while the overall metal products industry declined by 1.67% during the same period, indicating market sensitivity to fundamental factors [2] Financial Performance and Strategy - For the third quarter of fiscal year 2025 (ending September 30, 2025), the company reported revenue of $734 million and a net profit of $123 million, marking a year-over-year growth of 44.7% [3] - The specialty alloys division performed exceptionally well, generating an operating profit of $171 million [3] - Future focus will be on the brownfield expansion project, with capital expenditures projected to reach between $280 million and $300 million in fiscal year 2026, aimed at enhancing smelting capacity to meet long-term demand in aerospace, defense, and energy markets [3] - The company is executing a $400 million stock repurchase plan, with approximately $249 million remaining as of September 30, 2025 [3] Industry and Risk Analysis - As of January 8, 89% of participating rating agencies recommended a "buy" rating for the company [4] - Financial forecasts indicate an expected annual revenue growth rate of 16.42% and an annual earnings per share growth rate of 90.18%, both exceeding industry averages [4] - Key risks to monitor include fluctuations in metal prices, adjustments in global supply chains, and the sustainability of demand in the aerospace sector [4]

Core Insights - The U.S. stock market's AI-driven bull run from 2023 to 2025 has continued into 2026, benefiting various sectors, particularly old-economy stocks in industrials, finance, auto, materials, and construction [1] Group 1: Investment Opportunities - Investing in old-economy stocks with a favorable Zacks Rank is expected to yield profits in 2026, providing opportunities for portfolio diversification [2] - Five old-economy stocks with strong earnings results and favorable Zacks Rank include Parker-Hannifin Corp. (PH), The Goldman Sachs Group Inc. (GS), GE Aerospace (GE), C.H. Robinson Worldwide Inc. (CHRW), and Carpenter Technology Corp. (CRS) [3] Group 2: Parker-Hannifin Corp. (PH) - Parker-Hannifin reported adjusted earnings of $7.65 per share for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate of $7.15, with total sales of $5.17 billion surpassing the consensus estimate of $5.04 billion [6] - The company benefits from steady demand in commercial and military markets, with a Win strategy driving margins and shareholder value [7][8] - Expected revenue and earnings growth rates for PH are 6.8% and 12.9%, respectively, for the current year, with a current dividend yield of 0.74% [11] Group 3: The Goldman Sachs Group Inc. (GS) - Goldman Sachs reported Q4 2025 earnings per share of $14.01, exceeding the Zacks Consensus Estimate of $11.77, while net revenues were $13.45 billion, slightly below the estimate of $13.61 billion [12] - The firm is focusing on its core strengths in investment banking and trading, with expansion in the private equity credit market expected to diversify revenue [14] - Expected revenue and earnings growth rates for GS are 8.6% and 10.3%, respectively, for the current year, with a current dividend yield of 1.70% [16] Group 4: GE Aerospace - GE Aerospace's Q4 adjusted earnings were $1.57 per share, beating the Zacks Consensus Estimate of $1.44, with adjusted revenues of $11.87 billion exceeding the estimate of $11.26 billion [17] - The company is experiencing strong demand for commercial engines and propulsion technologies, supported by rising defense budgets and robust air travel demand [18] - Expected revenue and earnings growth rates for GE are 13.8% and 17%, respectively, for the current year, with a current dividend yield of 0.45% [19] Group 5: C.H. Robinson Worldwide Inc. (CHRW) - C.H. Robinson reported Q4 2025 adjusted earnings of $1.23 per share, surpassing the Zacks Consensus Estimate of $1.12, while total revenues of $3.91 billion narrowly missed the estimate of $3.95 billion [20] - The company is focused on shareholder returns through dividends and share repurchases, with AI integration enhancing operational efficiency [22] - Expected revenue and earnings growth rates for CHRW are 3.9% and 15.9%, respectively, for the current year, with a current dividend yield of 1.26% [23] Group 6: Carpenter Technology Corp. (CRS) - Carpenter Technology reported adjusted earnings of $2.33 per share for Q2 fiscal 2026, beating the Zacks Consensus Estimate of $2.20, with net revenues of $728 million slightly below the estimate of $729 million [24] - The company is experiencing strong booking growth and robust demand in Aerospace and Defense, with a positive outlook supported by strategic acquisitions [26] - Expected revenue and earnings growth rates for CRS are 6.6% and 36.5%, respectively, for the current year, with a current dividend yield of 0.22% [27]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Carpenter Technology (CRS) - Carpenter Technology currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, CRS shares have increased by 14.88%, outperforming the Zacks Steel - Specialty industry, which rose by 10.19% [5] - In a longer timeframe, CRS shares have risen by 9.89% over the past quarter and 91.72% over the last year, while the S&P 500 has only increased by 3.73% and 16.78%, respectively [6] Trading Volume - CRS has an average 20-day trading volume of 973,766 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for CRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.07 to $10.21 [9] - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment regarding future earnings [9] Conclusion - Considering the positive momentum indicators and earnings outlook, CRS is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]