Markets

Commercial Metals (CMC) Stock Moves -0.92%: What You Should Know

Commercial Metals (CMC) closed at $21.47 in the latest trading session, marking a -0.92% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.12%. At the same time, the Dow lost 0.88%, and the tech-heavy Nasdaq lost 1.07%.

Heading into today, shares of the manufacturer and recycler of steel and metal products had gained 1.4% over the past month, lagging the Basic Materials sector's gain of 3.32% and outpacing the S&P 500's loss of 0.59% in that time.

Investors will be hoping for strength from CMC as it approaches its next earnings release. On that day, CMC is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 23.68%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, down 10.55% from the year-ago period.

Investors should also note any recent changes to analyst estimates for CMC. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 1.41% lower. CMC is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, CMC is holding a Forward P/E ratio of 11.29. This valuation marks a discount compared to its industry's average Forward P/E of 16.31.

Meanwhile, CMC's PEG ratio is currently 3.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Steel - Producers stocks are, on average, holding a PEG ratio of 2.53 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Click to get this free report

Commercial Metals Company (CMC): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More