U.S. markets open in 4 hours 17 minutes
  • S&P Futures

    4,367.50
    +24.25 (+0.56%)
     
  • Dow Futures

    33,988.00
    +190.00 (+0.56%)
     
  • Nasdaq Futures

    15,085.50
    +61.50 (+0.41%)
     
  • Russell 2000 Futures

    2,198.20
    +17.30 (+0.79%)
     
  • Crude Oil

    71.67
    +1.18 (+1.67%)
     
  • Gold

    1,775.30
    -2.90 (-0.16%)
     
  • Silver

    22.69
    +0.08 (+0.37%)
     
  • EUR/USD

    1.1738
    +0.0008 (+0.07%)
     
  • 10-Yr Bond

    1.3240
    0.0000 (0.00%)
     
  • Vix

    22.88
    -2.83 (-11.01%)
     
  • GBP/USD

    1.3634
    -0.0030 (-0.22%)
     
  • USD/JPY

    109.5390
    +0.3190 (+0.29%)
     
  • BTC-USD

    42,225.43
    -967.66 (-2.24%)
     
  • CMC Crypto 200

    1,053.96
    -9.89 (-0.93%)
     
  • FTSE 100

    7,058.58
    +77.60 (+1.11%)
     
  • Nikkei 225

    29,639.40
    -200.31 (-0.67%)
     

Crane (CR) to Benefit From Buyouts and Growth Investments

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

On Nov 17, we issued an updated research report on Crane Co. CR.

In the past month, this Zacks Rank #2 (Buy) stock has returned 21.3% compared with the industry’s growth of 12%.

Present Scenario

Crane is well positioned to benefit from its exposure in diverse end markets along with the focus on growth investments, product development, repositioning and cost reduction initiatives in the quarters ahead.

Also, the company’s buyout of CIRCOR International’s Instrumentation & Sampling business (January 2020) has been augmenting its process valve business. In addition, the Cummins Allison buyout (December 2019) has been adding value to the Crane Payment Innovations business. Notably, acquired assets boosted its sales by 6.8%, 6% and 7.7% in the first, second and third quarters of 2020, respectively. Also, for 2020, Crane expects acquisitions to boost its sales by 7%.

Moreover, the company remains committed to rewarding shareholders handsomely through dividend payments and share buybacks. In the first nine months of 2020, it used $75.4 million for paying out dividends, and repurchasing shares worth $70 million. It’s worth mentioning that the quarterly dividend rate was hiked by 10% in January 2020.

However, softness across its end markets on account of the coronavirus outbreak-led issues remains concerning for its top-line performance in the near term. For 2020, Crane expects net sales of $2,900-$2.950 million, suggesting a decline of 11% from the year-ago reported figure. Core sales are predicted to decline 17-19% year over year.

Other Stocks to Consider

Some other top-ranked stocks from the same space are 3M Company MMM, ITT Inc. ITT and Danaher Corporation DHR, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3M delivered an earnings surprise of 1.85%, on average, in the trailing four quarters.

ITT delivered an earnings surprise of 22.39%, on average, in the trailing four quarters.

Danaher delivered an earnings surprise of 17.00%, on average, in the trailing four quarters.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
3M Company (MMM) : Free Stock Analysis Report
 
ITT Inc. (ITT) : Free Stock Analysis Report
 
Danaher Corporation (DHR) : Free Stock Analysis Report
 
Crane Company (CR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research