Carpenter Technology Corporation (CRS) Hit a 52 Week High, Can the Run Continue?

Shares of Carpenter Technology (CRS) have been strong performers lately, with the stock up 11.1% over the past month. The stock hit a new 52-week high of $370.59 in the previous session. Carpenter has gained 16% since the start of the year compared to the 16.3% move for the Zacks Basic Materials sector and the 18.3% return for the Zacks Steel - Speciality industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 29, 2026, Carpenter reported EPS of $2.33 versus consensus estimate of $2.2.

For the current fiscal year, Carpenter is expected to post earnings of $10.2 per share on $3.07 in revenues. This represents a 36.5% change in EPS on a 6.59% change in revenues. For the next fiscal year, the company is expected to earn $12.13 per share on $3.37 in revenues. This represents a year-over-year change of 18.81% and 9.93%, respectively.

Valuation Metrics

While Carpenter has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Carpenter has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 35.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.1X. On a trailing cash flow basis, the stock currently trades at 35.1X versus its peer group's average of 13.8X. Additionally, the stock has a PEG ratio of 1.44. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Carpenter currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carpenter passes the test. Thus, it seems as though Carpenter shares could have potential in the weeks and months to come.

How Does CRS Stack Up to the Competition?

Shares of CRS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Insteel Industries, Inc. (IIIN). IIIN has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of C.

Earnings were strong last quarter. Insteel Industries, Inc. beat our consensus estimate by 18.18%, and for the current fiscal year, IIIN is expected to post earnings of $3.04 per share on revenue of $741 million.

Shares of Insteel Industries, Inc. have gained 10.4% over the past month, and currently trade at a forward P/E of 12.04X and a P/CF of 11.55X.

The Steel - Speciality industry may rank in the bottom 69% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CRS and IIIN, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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