Is Crown Holdings (CCK) Still a Buy Despite Rising Share Prices?

Crown Holdings (CCK) has surged in 2025, with its stock price climbing 28.04% year-to-date and hitting a 52-week high of $109.48 as of December 2025. Analysts remain bullish, assigning a "Strong Buy" rating and a 12-month price target of $119.36, implying a 14.19% upside. However, with valuations rising alongside the share price, investors must ask: Is CCK still a compelling buy? This analysis evaluates the stock through the lenses of valuation metrics, fundamental performance, and technical signals to determine its investment potential.

Valuation Metrics: Reasonable or Overdue for a Correction?

CCK's current Price/Earnings (P/E) ratio of 13.66 appears modest compared to the broader market but is slightly above the packaging industry's average P/E of 12.68. This suggests the market is pricing in stronger earnings growth for CCK relative to its peers. However, the company's Price/Book (P/B) ratio of 3.43 stands well above the industry average of 2.18, indicating a premium for its assets. While this could reflect confidence in CCK's operational efficiency-evidenced by a Return on Assets (ROA) of 6.20%-investors should monitor whether this premium is justified by sustained performance.

The Enterprise Value/EBITDA (EV/EBITDA) ratio of 8.27 aligns with the packaging sector's historical range of 8x–9x, suggesting CCK is neither overvalued nor undervalued on this metric. However, the stock's 52-week range of $75.98 to $109.48 highlights volatility, which could widen further if macroeconomic conditions shift.

Fundamental Performance: A Story of Resilience

CCK's fundamentals remain robust. The company has consistently outperformed both the packaging industry and the S&P 500, delivering a 28.04% return in 2025 compared to the industry's -6.5% and the market's 19.3%. This outperformance is driven by strong cash flow generation and operational efficiency, as reflected in its 6.20% ROA. Additionally, CCK's dividend of $0.26 per share-supported by its cash flow-appeals to income-focused investors, particularly in a rising interest rate environment.

Looking ahead, the company's fourth-quarter 2025 earnings report, scheduled for February 4, 2026, will be critical. A beat on earnings or revenue could reinforce the current valuation premium, while a miss might trigger a reassessment of its growth prospects.

Technical Signals: Momentum in Favor

Technical indicators paint a bullish picture for CCK. The Relative Strength Index (RSI) of 58.255 suggests the stock is in a neutral to overbought zone, historically signaling potential for further gains. Meanwhile, all key moving averages-the 5-day (103.59), 10-day (102.15), 20-day (101.80), 50-day (99.45), and 200-day (96.98)-are in ascending order, forming a "golden cross" pattern that often precedes upward momentum.

The stock's 16.68% rise over the past three months also aligns with a broader trend of outperformance, suggesting strong institutional and retail demand. However, investors should remain cautious if the RSI crosses into overbought territory (70+), which could signal a short-term pullback.

### Conclusion: A Buy, But With Caution CCK's valuation metrics, while elevated on a P/B basis, remain reasonable when compared to industry benchmarks. Its fundamentals-strong ROA, consistent dividends, and outperformance relative to peers-justify the current premium. Technically, the stock is in a strong uptrend, supported by positive momentum indicators.

However, the rising share price has compressed the margin of safety for new investors. While the "Strong Buy" analyst rating and $119.36 price target remain intact, the stock's performance in early 2026 will hinge on its Q4 earnings report and broader macroeconomic conditions. For now, CCK appears to be a buy for long-term investors who can tolerate near-term volatility and are positioned to benefit from its operational resilience.