Crane Getting Some Credit For Cycle Leverage, But Has More To Give

 

Up about 25% and beating the broader industrial sector by about 7% since my last update, I can’t complain that Crane (CR) is going neglected and unappreciated by the Street, or at least not to the same extent. While Crane came close to matching the broader multi-industrial group for organic growth in Q2, about half of the business is in longer-cycle markets that really haven’t recovered yet, so there’s still more to come.

The shares look undervalued on my numbers, which are in turn lower than sell-side estimates and management’s projections offered in recent investor updates. If management can deliver to that even higher standard, double-digit returns are still very much in play from here.

 

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Crane Getting Some Credit For Cycle Leverage, But Has More To Give