IBD Stock Analysis
- Crane cleared a 100.03 buy point from a long consolidation.
- The relative strength line is trending upward, near all-time highs.
- The stock gapped up above the 50-day line last month.
Industry Group Ranking
* Not real-time data. All data shown was captured at
3:03PM EDT on
Crane (CR), a maker of engineered industrial products, is the IBD Stock Of The Day, as CR stock popped past a buy point Wednesday.
The Stamford, Conn.-based company makes aerospace equipment, electronics and other gear. It also provides products and solutions to customers in the chemicals, oil and gas, and power generation industries. Additionally, it offers automated payment solutions.
The company is best known to the consumer public as a large manufacturer of vending machines via its Crane Merchandising Systems subsidiary.
It has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies and Engineered Materials. On May 24, Crane announced that it had signed an agreement to divest its Engineered Materials segment. That sale is pending, subject to customary closing conditions and regulatory approval.
The stock gapped up above the 50-day line last month.
With a Composite Rating of 95, Crane ranks No. 1 among its peers in the Diversified Operations industry group.
Last month, Crane posted better-than-expected second-quarter earnings and revenue. Its EPS skyrocketed 205% to $1.83, vs. 64 cents in the year-ago quarter, beating views by 44 cents. Revenue rose 24% year over year to $796 million, also above views.
As a result, Crane management boosted EPS guidance for the year to $5.95-$6.15, up from $5.65-$5.85.
DA Davidson analyst Matt Summerville said in a July 27 report that “strong organic upside in both Payment & Merchandising Technologies (PMT) and Process Flow Technologies (PFT)” fueled revenue growth. He added, “Operating margins on an adjusted basis were 17.6%, well above our 15% estimate.”
Crane CEO Max Mitchell said in a statement the company is “also continuing our substantial investments in technology and strategic growth initiatives positioning us for continued outgrowth through the post-Covid recovery, and we expect strong operating leverage given our consistently solid execution.”
Follow Adelia Cellini Linecker n Twitter @IBD_Adelia.
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