What Makes Carpenter Technology (CRS) an Investment Choice?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 13.13% (gross) and 12.91% (net), compared to the Russell Midcap® Growth Index’s 18.20% return. Equities recorded double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks such as Carpenter Technology Corporation (NYSE:CRS). Carpenter Technology Corporation (NYSE:CRS) engages in the manufacturing, fabrication, and distribution of specialty metals. The one-month return of Carpenter Technology Corporation (NYSE:CRS) was 0.61%, and its shares gained 52.72% of their value over the last 52 weeks. On September 29, 2025, Carpenter Technology Corporation (NYSE:CRS) stock closed at $241.29 per share, with a market capitalization of $12.505 billion.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Carpenter Technology Corporation (NYSE:CRS) in its second quarter 2025 investor letter:

"New to the strategy was Carpenter Technology Corporation (NYSE:CRS), which manufactures engineered metals primarily for aerospace, with some for medical devices and other specialty markets. Carpenter is part of a duopoly that supplies high-performance alloys for jet engine combustion chambers, though with overall higher margins—thanks to its other business lines—and a stronger balance sheet than its competitor. In addition, most of Carpenter’s revenues were tied to spot-market prices, rather than fixed long-term agreements, which allow for more advantageous pricing strategies in response to short-term changes in supply or demand."

Carpenter Technology Corporation (NYSE:CRS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 78 hedge fund portfolios held Carpenter Technology Corporation (NYSE:CRS) at the end of the second quarter, up from 55 in the previous quarter.  While we acknowledge the potential of Carpenter Technology Corporation (NYSE:CRS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Carpenter Technology Corporation (NYSE:CRS) and shared the list of high-risk high-reward growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.