Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Carpenter Technology Waiting For Orders To Drive Utilization

Like Universal Stainless (NASDAQ:USAP), I thought back in February that Carpenter Technology (NYSE:CRS) was an interesting high-risk way to play improving sentiment about aerospace (or aerospace components) with maybe an "at least it won't get worse" kicker from energy. Like USAP, Carpenter has rewarded that viewpoint, with the shares up almost 50% from the time of my last article.

I'm not as bullish on Carpenter now, though. I do believe that the comments coming from major engine suppliers like General Electric (NYSE:GE) and United Technologies (NYSE:UTX) bode well for deliveries over the next three to five years, but I'm still concerned that overall aircraft deliveries will disappoint (especially in widebodies) and that

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details