Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 19 Sep, 24 | CRS | Buy | USD 155.0 | USD 173.35 | USD 183.0 | 48 days | 18.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.
Operating Efficiency: Asset Turnover of 0.22x in Q3 FY24 vs Industry Median of 0.10x
Improved Liquidity: Current Ratio of 3.20x in Q3 FY24 vs Industry Median of 2.11x
Short-Term Profitability: Net Margin of 0.9% in Q3 FY24 vs Industry Median of 7.3%
Balance Sheet Risk: Debt-Equity of 0.46x in Q3 FY24 vs Industry Median of 0.21x
Dependence on Key Industries, Product Liability and Quality Control, Geographic Concentration, Pension Liabilities, Integration of Acquisitions, Labor Relations, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 155.0 | 136.9 | 173.35 | 183.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
CRS stock price has broken out of a falling trendline resistance zone, indicating possibility of further upside move in the near term. As the stock continues to rise, it is likely to face a key resistance level at USD 178.47 in the short term, potentially within the next 2-4 weeks. If the stock successfully breaches this level, it could trigger further buying momentum and potentially lead to extended gains in the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period RSI (Relative Strength Index) is above the midpoint at 68.98, supporting positive bias. Trading volumes appear to support this upward movement. Additionally, the stock currently trades above its 21-day and 50-day Simple Moving Averages (SMAs), which could serve as support levels in the event of any short-term price fluctuations.
As per the above-mentioned price action and technical indicators analysis, Carpenter Technology Corporation (NYSE: CRS) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock at USD 155.00 as of 19 September 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Metal Fabrication
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CRS Carpenter Technology Corporation |
1.32 0.73% | 182.50 | 46.10 | 16.56 | 3.73 | 6.20 | 3.84 | 23.52 |
| ATI Allegheny Technologies Incorporated |
0.07 0.13% | 52.10 | 21.96 | 23.87 | 1.91 | 4.51 | 2.25 | 16.08 |
| MLI Mueller Industries Inc |
0.49 0.64% | 76.63 | 8.62 | 14.62 | 1.47 | 2.35 | 1.17 | 4.64 |
| ESAB ESAB Corp |
3.68 3.16% | 120.18 | 24.11 | 17.95 | 1.89 | 3.47 | 2.29 | 13.20 |
| TYEKF Thyssenkrupp AG O.N. |
0.69 6.73% | 10.95 | - | 14.22 | 0.12 | 0.34 | 0.03 | -0.4811 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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