Buy Crane CompanyShort Term Trading Advice by Naranj Capital
Buy Crane Company
● Buy Range- 134 - 136.5
● Target- 144 - 145
● StopLoss- 129.5
● Potential Return- 5-6%
● Duration- 10-12 Trading Days
T12 trade ideas
Crane Holdings (CR) Surges Over 5.1%Crane Holdings (CR) shares rallied 5.1% in the last trading session to close at $117.07. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.7% loss over the past four weeks.
The stock gained primarily on optimism surrounding easing supply chain disruptions and, reduction in raw material costs owing to deceleration in inflation.
This maker of engineered industrial products is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of +4.4%. Revenues are expected to be $808.77 million, up 1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
Technical Analysis
The technical indicators for the stock show mixed signals. The moving averages indicate a bullish trend, as the stock is trading above its 50-day, 100-day, and 200-day moving averages. The relative strength index (RSI) shows that the stock is neither overbought nor oversold, with a value of 53.793. The MACD oscillator shows a bearish signal, as the MACD line is below the signal line and the histogram is negative3. The stochastic oscillator shows a neutral signal, as the %K line is below the %D line, but both are near the middle of the range.
Crane Co (CR) Reports Strong Q3 2023 ResultsCrane Co (CR) Reports Strong Q3 2023 Results and Raises Full Year EPS Guidance.
On October 23, 2023, Crane Co (NYSE:CR) released its financial results for the third quarter of 2023, reporting strong performance and raising its full-year outlook. The company's earnings from continuing operations per diluted share (EPS) stood at $0.96, with an adjusted EPS of $1.03. Crane Co (NYSE:CR) also reported a core year-over-year sales growth of 9% and a significant growth in operating profit from continuing operations of 165%.
Financial Highlights
The company's net sales for Q3 2023 were $530 million, a 10% increase from $480 million in Q3 2022. Operating profit from continuing operations was $76 million, a significant turnaround from the operating loss of $117 million last year. The adjusted operating profit from continuing operations stood at $81 million, marking a 42% increase from the prior year.
Crane Co (NYSE:CR) also announced the acquisition of Baum lined piping GmbH for approximately $91 million on a cash-free and debt-free basis. This strategic acquisition is expected to bolster the company's Chemical business within the Process Flow Technologies segment.
Segment Performance
The Aerospace & Electronics segment reported sales of $207 million, a 24% increase compared to the prior year, with an operating profit margin of 19.4%. The Process Flow Technologies segment reported sales of $267 million, a 7% increase, with an operating profit margin of 19.2%. The Engineered Materials segment, however, reported a decrease in sales by 11% to $56 million, but saw an improvement in operating profit margin to 13.7%.
Outlook and Dividend Announcement
Crane Co (NYSE:CR) has raised and narrowed its adjusted EPS guidance for 2023 to a range of $4.05 to $4.20, up from the prior range of $3.80 to $4.10. The company also declared a fourth quarter 2023 dividend of $0.18 per share.
Despite some signs of expected slowing order activity in a few of its industrial and process flow markets, the company remains optimistic about its prospects in the coming quarters and years.
ABC bullish Gaps OverheadA struggle to say the least. This one may hit C again Fundamentals are good. Market timing not quite there yet
Crane Co. manufactures and sells engineered industrial products in the United States, Canada, the United Kingdom, Continental Europe, and internationally. The company's Fluid Handling segment offers on/off valves and related products for the chemical, oil and gas, power, and general industrial end markets; valves and related products for the non-residential construction, general industrial, and municipal markets; fluid control instrumentation and sampling solutions; and pumps and related products for water and wastewater applications in industrial, municipal, commercial, and military markets. This segment sells its products under the Crane, Saunders, Jenkins, Pacific, Xomox, Krombach, DEPA, ELRO, REVO, Flowseal, Centerline, Resistoflex, Duochek, Barksdale, Westlock, WTA, HOKE, DOPAK, Stockham, Wask, Viking Johnson, IAT, Hattersley, NABIC, Sperryn, Wade, Deming, Weinman, Burks, and Barnes brands. Its Payment & Merchandising Technologies segment provides technology payment acceptance products for the retail self-checkout, vending, casino gaming, government lotteries, parking, transit fare collection, payment kiosks, and financial services markets; banknotes and engineered banknote security products; retail cash office solutions; and vending equipment, vending management software, cashless payment, and wireless connectivity products for vending operators, and food and beverage companies. The company's Aerospace & Electronics segment offers original equipment and aftermarket parts under the Hydro-Aire, ELDEC, Lear Romec, P.L. Porter, Keltec, Interpoint, Signal Technology, Merrimac Industries, and Polyflon brands to commercial and military aerospace, and defense and space markets. Its Engineered Materials segment provides fiberglass-reinforced plastic panels and coils to manufacture recreational vehicles, truck bodies, and trailers, as well as used in commercial and industrial building construction. The company was founded in 1855 and is based in Stamford, Connecticut.
Not a recommendation
A vision without action is a dream. Action without vision is a nightmare
$CR potential breakout from simetrical triangle on weekly chart$CR price has been forming a simetrical triangle for the past year
Price action suggests that we might go and breakout from it (keep in mind it tried in july and failed)
MACD and RSI support the move up
Look for a WEEKLY close outside the triangle in order to participate
Measured target around 114.91
Good luck,
TA
CR: Ascending triangleCR: Ascending triangle on descending volume
PPS above 50MA
ATR pointing up
If confirmed, Target price = 103.91$
Cons:
250RSI below 50
200MA slightly pointing south
Stock CR Seasonality Stock CR seasonality starts to Buy date on January 24 and ends Sell date on April 24
Percent Profitable is 84.21% in 19 years and an average return of 10.72% per year
CR Put Spread$1.68 Max loss Max risk is $100
Shorting CR as its been fading and its trending lower and lower.
RSI is maintaining under 50 and continues to proceed on its trend.
Entry might be a bit off but looks like it will continue.
75/70 EXP September 20th
What are cranes made of? Cranium! (3)This stock is a slow but steady grinder, its completed multiple abcd patterns to the upside. Its had a great bounce after the big market selloff but i am not sure its ready to go higher just yet.
Timing = 1 ( The market is stretched and i expect downside coming soon)
Volume = 0 ( The volume is looks neutral on this one )
Group strength = 1 (Industrials looks weak so far this year)
Entry = 0 ( I think this entry is ok (not great) , its near a area of resistance 90 $ mark)
Fractal = 1 (fractals do support breakdown at this time)
Low Volume Stock but Bearish DCTIt has a measured downside move of 9% from today's close. Make your stop loss recent swing high $47 with target price $41 Go for real-time alerts www.2waytrading.com
