Carpenter Technology: Excellent Fundamentals; Stretchy Valuations

Zach Bristow
4.18K Followers

Summary

  • The Bloomberg Commodity Index has outperformed equities and bonds in the last 3 months.
  • Carpenter Technology Corporation has displayed qualified growth in sales and earnings since 2022.
  • Valuations currently reflect this excellent performance, and there is downside risk at the current trailing P/E of 30x non-GAAP earnings.
  • Rate hold.

Business on Wall Street in Manhattan

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Investment Summary

Our strategic view at Bernard Investment Group is that we are well within another commodities super-cycle. We have held this view since mid-2021, when inflationary data surfaced and began to impact global equity markets. The asset class's

This article was written by

4.18K Followers
Equity strategist (US Equities)Technical focus on fundamental value drivers of business economics to uncover high probability long-term compounders. Seeking to buy at appropriate prices relative to intrinsic worth. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures & options markets. Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Conduct your own due diligence. The Company accepts no responsibility for personal decisions made. Opinions of The Company and its affiliates may change from time to time without prior acknowledgement. The Company and its representatives share no economic relationship with any entities in which it holds common stock investments.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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