Here's Why It's Worth Investing in Crane (CR) Stock Now
Zacks Investment Research | Nov 30, 2021 05:05AM ET
Crane Co. CR currently boasts robust prospects on strength in its businesses, strong cash flows, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $5.9 billion. In the past six months, the stock has gained 4.6% against the industry ’s decline of 5.4%.
Let’s discuss the factors that make the company a smart investment option at the moment.
Business Strength: Crane has been benefiting from improving order trends across its businesses, including short-cycle commercial and core process. Strength in the chemical and general industrial end markets along with recovery in the commercial aerospace end market is likely to drive performance in the quarters ahead.
For 2021, the company predicts overall sales of $3,150 million, higher than $3,100 million predicted earlier. For the long run, Crane remains optimistic about growth opportunities in the Aerospace & Electronics segment. It expects the segment to generate core sales growth of 7-9% (CAGR) from 2021 through 2030. Acquisition Benefits: Crane intends to strengthen and expand its businesses through acquisitions. In January 2020, the company acquired CIRCOR International’s Instrumentation & Sampling business, which has been adding value to its process valve business. For 2021, the company expects acquisitions to boost sales by $5 million. Strong Cash Flows & Shareholder Rewards: Strong cash flows enable the company to deploy capital for repurchasing shares and paying out dividends. In the first nine months of 2021, the company generated a strong free cash flow of $286.4 million. For 2021, it predicts free cash flow to be $340-$365 million.
In the first nine months of 2021, it paid out dividends worth $75.5 million. In January 2020, the company announced a 10% hike in its quarterly dividend rate. Also, it unveiled a share repurchase program worth $300 million in October 2021. Estimate Revisions: In the past 30 days, analysts have increasingly become bullish on Crane, as evident from positive earnings estimate revisions. The Zacks Consensus Estimate for its 2021 earnings has trended up from $6.34 to $6.43 on one upward estimate revision against none downward. Over the same timeframe, the consensus estimate for 2022 earnings has jumped from $7.23 to $7.31 on one upward estimate revision against none downward.
Get The News You Want
Some other top-ranked companies are discussed below. Helios Technologies (NYSE:HLIO), Inc. WBT presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 172.50%, on average. Welbilt’s earnings estimates have increased 3.2% for 2021 and 5.9% for 2022 in the past 30 days. Its shares have lost 4.4% in the past six months.
Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative.
See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. To read this article on Zacks.com click here.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.