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Commercial Metals (CMC) Outpaces Stock Market Gains: What You Should Know

Commercial Metals (CMC) closed the most recent trading day at $43.22, moving +1.1% from the previous trading session. This change outpaced the S&P 500's 0.99% gain on the day.

Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 4.53% in the past month. In that same time, the Basic Materials sector lost 7.94%, while the S&P 500 gained 0.42%.

Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which is expected to be June 22, 2023. In that report, analysts expect Commercial Metals to post earnings of $1.53 per share. This would mark a year-over-year decline of 41.38%. Our most recent consensus estimate is calling for quarterly revenue of $2.15 billion, down 14.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.77 per share and revenue of $8.58 billion, which would represent changes of -5.13% and -3.79%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Commercial Metals. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Commercial Metals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Commercial Metals is currently trading at a Forward P/E ratio of 5.5. This valuation marks a discount compared to its industry's average Forward P/E of 7.7.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Commercial Metals Company (CMC) : Free Stock Analysis Report

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