How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Carpenter Technology, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in November 2014 would be worth $3,685.26, or a 268.53% gain, as of November 25, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 189.28% and gold's return of 116.52% over the same time frame.
Analysts are forecasting more upside for CRS too.
Carpenter Technology’s backlog was near-record levels in the first quarter of fiscal 2025, 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 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. Although the company has been facing supply-chain challenges, it will be offset by the gains. Backed by solid backlog levels, its near and long-term outlooks for each end-use market remained positive. Its strategic acquisitions will boost its performance in the coming quarters. Earnings estimates for fiscal 2025 have undergone positive revisions lately.
The stock has jumped 22.83% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024; the consensus estimate has moved up as well.Zacks' Research Chief Names "Stock Most Likely to Double"
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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.
