Crane's Sluggish Growth Guidance And First Quarter Head Fake Won't Help The Shares

Crane's (NYSE:CR) first quarter results, and the reaction to them, sort of remind me of what happens when you have a smart dog and you do the "pretend to throw the ball but actually don't" trick. While the growth in this first quarter looked very strong, it's not going to last, and the underlying trends in the business are more in the range of "okay" than exciting.

I have very mixed feelings on Crane as an investment. The growth and margin outlook, not to mention the growth and margin history, aren't exceptional, and it can be challenging to generate above-average long-term gains from average performers. On the other hand, Crane is leveraged to what should be comparatively healthy markets, and management has plans in place to improve the margin profile. With the shares more than 10% below my fair value, it's hard not to consider this name more closely.

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Crane's Sluggish Growth Guidance And First Quarter Head Fake Won't Help The Shares