Crane Hits New 52-Week High On Solid Performance & View

Shares of Crane Co. (NYSE:CR) reached a new 52-week high of $76.09 during its trading session on Nov 23. This apex improved upon the last 52-week high of $75.37 on Nov 22.

Crane Co. closed its trading session at $75.67, yielding year-to-date return of roughly 61%. The trading volume for the session was 0.38 million shares. Earnings estimate revisions for 2016 and 2017, along with an expected earnings growth rate of 9.1% for the next five years indicate the stock’s potential for further price appreciation.

Growth Drivers

Crane Co. reported better-than-expected results in the last four quarters, with an average positive earnings surprise of 8.32%. In third-quarter 2016, the company’s earnings of $1.07 per share exceeded the Zacks Consensus Estimate of $1.01 by 5.9%. The company’s share price has grown roughly 25% since results release on Oct 24.

For 2016, Crane Co. revised its earnings guidance to $4.12−$4.20 per share from $4.00−$4.20 expected earlier. Mid-point of the revised guidance is $4.16, higher than the earlier mid-point of $4.10. Core sales growth is now anticipated to be 0−2% versus the earlier forecast of (1.5%)−1.5%. Also, the company revised its free cash flow forecast to $200−$225 million from $195−$220 million expected earlier. Also, the company remains committed toward rewarding its shareholders handsomely through dividend payments and share buybacks, reflecting its solid cash position.

Currently, Crane Co. has an Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) of +0.24% for 2016 and +0.45% for 2017.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Crane Co. grew 0.7% to $4.18 per share for 2016 and 0.9% to $4.43 per share for 2017. These estimates represent year-over-year growth of 1.2% for 2016 and 6.1% for 2017.

With a market capitalization of $4.4 billion, Crane Co. currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the diversified operations industry include Leucadia National Corporation (NYSE:LUK) , Mitsubishi Corporation (OTC:MSBHY) and Danaher Corporation (NYSE:DHR) . While Leucadia National and Mitsubishi Corporation sport a Zacks Rank #1 (Strong Buy), Danaher Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Leucadia National Corporation’s earnings estimates for 2016 have been revised upward in the last 60 days. Also, earnings estimates for Mitsubishi Corporation increased for fiscal 2017 and fiscal 2018.

Danaher Corporation reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 6.09%. Also, earnings estimates for 2016 and 2017 have increased over the last 60 days.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>