Carpenter Technology Corp. (CRS) is a global leader in high-performance specialty alloy materials and process solutions for critical applications in the aerospace, defense, and medical markets. With a market cap of $8 billion, CRS has distinguished itself as a top performer in the mid-cap segment of the U.S. equity market, benefiting from a favorable environment for specialty alloys. The company continues to experience strong growth, driven by macroeconomic trends in precious and industrial metals, as well as strong demand across key end markets such as aerospace, defense, utilities, electronics, semiconductors, medical devices, and EV manufacturing. In the last quarter, CRS maintained its leadership position and continues its outperformance with a massive 37.70% rate of return while the benchmark S&P 500 gained a mere 4.08%. Relative performance against broader benchmarks like the S&P 500 highlights the strength of CRS’s trend, with a notable breakout occurring in late 2024.
The most recent market pullback had seen consolidation in the range of $150 and $200; however, at the time of writing, CRS shares are trading just above $250, representing an increase of 19.19% over the past month. The stock’s continued upward trajectory is once again supported by strong technical attributes along with fundamental drivers, including strong industry tailwinds and geo-political tensions around rare earth metals.
Resistance levels can be established using point-and-figure vertical count methodology. Initial resistance is calculated at $273.90, with a secondary resistance target at $308.46, which also aligns with a key whole level psychological threshold. On the downside, initial support is identified at the $238.45 level (3-box method), with additional support seen near $211.74 with the two offering a potential cushion in the event of short-term volatility.
CRS continues to carry a perfect SMAX score of 10 out of 10, a near term SIA reading indicating near term strong relative strength compared to other asset classes tracked by the SIA Platform. Its high placement (#1 Position) within the SIA Mid Cap Index Report reinforces its relative strength/momentum status which could suggests continued interest from trend-following and sector-rotation strategies. With bullish technical, ongoing institutional interest, and favorable macro conditions, Carpenter shares appear well-positioned for SIA practitioners seeking investments with high relative strength attributes.
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