Already outpacing 98% of all stocks with a 98 Composite Rating, Carpenter Technology has landed a spot on Investor's Business Daily's Leaderboard list of top stocks to watch. The maker of specialty alloys joins high-tech powerhouses like Nvidia, Broadcom, and Palantir Technologies in this exclusive club currently featuring 19 members.
After recently notching an all-time high, Carpenter Technology looks to add to its run from a freshly minted three-weeks tight formation. Now, as Nvidia, Broadcom, and Palantir keep notching record highs, Carpenter trumps these tech giants in terms of two telltale sign of demand: the up/down volume ratio and the Accumulation/Distribution Rating.
Carpenter Technology Garners Robust Demand
Founded over 125 years ago in 1889, Carpenter Technology now employs over 4,500 people with a global footprint, generating $2.8 billion in revenue for fiscal 2024.
The company makes high-performance, specialty alloy-based materials and process solutions. It operates across seven core markets: Aerospace, Transportation, Consumer, Defense, Energy, Industrial and Medical.
While Carpenter Technologies did not join Nvidia, Broadcom, and Palantir on the latest list of new buys by the best mutual funds, it has garnered exceptional demand, putting it among the best stocks to watch.
Carpenter sports an A- Accumulation/Distribution Rating and a stellar 3.5 up/down volume ratio. Any number above 1.0 points to demand, and Carpenter more than triples that. While the scores for Nvidia (2.0), Broadcom (1.6) and Palantir (1.5) are all strong, they pale in comparison to the specialty steel maker.
Over the last three quarters, Carpenter Technology has generated average earnings growth of 60%. Its average gains over the last three years stands at 108%.
Carpenter Technology is set to report fiscal 2025 fourth-quarter numbers on July 31 before the market open. Wall Street forecasts 13% earnings growth to $2.06 per share. For the full fiscal year, analysts expect a 54% rise to $7.28 per share.
Operating cash flow is robust, totaling $7.50 a share in 2024 and sharply above earnings of $4.74 a share.
Carpenter Resets And Rebounds
After resetting its base count earlier this year, the stock broke out of a first-stage double bottom in May. With its relative strength line soaring, Carpenter Technology blasted right past a 198.48 to 208.40 buy zone.
Now extended beyond that buy range, the stock has just formed a three-weeks tight pattern. The buy point is 282.99, based on the peak of that formation.
With the Nasdaq continuing to trade at record highs, top tech stocks to watch like Carpenter Technology, Nvidia, Broadcom and Palantir remain in focus.
As the robust market rally continues, investors should keep in mind the tenets of risk management. Be sure to keep rules for how to buy stocks and when to sell close at hand.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
