Crane Company CR recently divested its Engineered Materials segment to KPS Capital Partners, LP (“KPS”) for $227 million. The deal was announced in December 2024.

KPS Capital manages the KPS Special Situations Funds. With approximately $21.4 billion in assets under management, the company focuses on controlling equity investments in manufacturing and industrial companies across diverse sectors. By partnering with talented management teams, KPS enhances business value through strategic improvements.

The divestment of the Engineered Materials segment will help Crane Company to focus on its core businesses while supporting its capital allocation priorities. It supports the company’s strategy to focus on two core growth areas: Aerospace & Electronics and Process Flow Technologies. Since the strategic separation in 2023, CR has continued to invest organically in its strategic growth platforms and has strengthened them further through acquisitions of Baum Lined Piping, Vian Enterprises, CryoWorks and Technifab Products.

Starting with the fourth quarter of 2024 results, CR will classify the Engineered Materials segment as discontinued operations. The company has also updated its adjusted earnings per diluted share (EPS) guidance for 2024. Crane Company now expects EPS to be in the range of $4.71-$4.86 compared with $5.05-$5.20 expected earlier. For the fourth quarter of 2024, adjusted EPS is anticipated to be in the band of $1.10-$1.25.

CR’s Zacks Rank and Price Performance

CR currently carries a Zacks Rank #4 (Sell). In the past year, the stock has gained 35.4% compared with the industry’s 11.8% growth.

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Stocks to Consider

Some better-ranked companies from the same space are discussed below.

Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.

Gates Industrial Corporation plc GTES currently carries a Zacks Rank #2 (Buy). GTES delivered a trailing four-quarter average earnings surprise of 11.8%.

In the past 60 days, the Zacks Consensus Estimate for Gates Industrial’s 2024 earnings has remained unchanged.

Generac Holdings Inc. GNRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.8%. 

The Zacks Consensus Estimate for GNRC’s 2024 earnings has increased 0.6% in the past 60 days.

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Graham Corporation (GHM) : Free Stock Analysis Report

Crane Company (CR) : Free Stock Analysis Report

Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

Gates Industrial Corporation PLC (GTES) : Free Stock Analysis Report

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