Carpenter Technology (NYSE:
CRS)
has a lot going for it as a company. Few companies can match its
technical capabilities (it's just one of three companies capable of
making alloys good enough for the demands of jet engines), and there are
growth opportunities everywhere for alloys that offer enhanced
performance (strength, corrosion resistance, etc.) and less weight.
What's more, the company's
acquisition of Latrobe and ongoing capacity expansion will significantly boost its capabilities, particularly in premium products.
Yet, for all of those good points, this is a still a cyclical business
tied to major end-markets like aerospace and energy. While the surge in
commercial aircraft production will almost certainly boost Carpenter's
sales and earnings for the next several years, the question is how much
of that is already in the stock and whether investors can really expect
outsized gains here.
Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Can-Aerospace-Produce-Enough-Lift-For-Carpenter-Technology-CRS-ATI-PCP-BA0601.aspx
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