Commercial Metals (CMC) closed at $54.87 in the latest trading session, marking a -0.85% move from the prior day. This change lagged the S&P 500’s daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Heading into today, shares of the manufacturer and recycler of steel and metal products had gained 13.49% over the past month, outpacing the Basic Materials sector’s gain of 10.34% and the S&P 500’s gain of 5.73% in that time.
Commercial Metals will be looking to display strength as it nears its next earnings release. In that report, analysts expect Commercial Metals to post earnings of $1.63 per share. This would mark year-over-year growth of 6.54%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $8.51 billion, which would represent changes of -8.18% and -4.48%, respectively, from the prior year.
Any recent changes to analyst estimates for Commercial Metals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.53% higher. Commercial Metals is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 7.36. This represents a discount compared to its industry’s average Forward P/E of 11.59.
The Steel – Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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