Here's Why Carpenter Technology Soared Again This Week

Shares in specialty alloy materials and process solutions company Carpenter Technology (NYSE: CRS) rose by 10.4% in the week to Friday morning. The move represents another leg up for a stock up 222% over the last year and 446% over the last three years. The catalyst for this week's move was its positive investor update on Tuesday.

As I've previously discussed, Carpenter is a company with heavy exposure to aerospace and defense (59% of sales in 2024) and the case for buying the stock rests on the aerospace recovery. Carpenter is a company with particularly good upside exposure because it has relatively high fixed costs, so revenue increases tend to drop down into significant margin expansion.