Commercial Metals (CMC) closed the most recent trading day at $33.72, moving +1.14% from the previous trading session. This change lagged the S&P 500's 2.44% gain on the day. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had lost 7.26% over the past month. This has lagged the Basic Materials sector's loss of 3.8% and was narrower than the S&P 500's loss of 9.65% in that time.
Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release. On that day, Commercial Metals is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 63.64%. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, up 24.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.72 per share and revenue of $7.71 billion. These totals would mark changes of +62.04% and +14.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Commercial Metals. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 26.05% higher. Commercial Metals is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Commercial Metals is holding a Forward P/E ratio of 5.83. Its industry sports an average Forward P/E of 4.73, so we one might conclude that Commercial Metals is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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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