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Here's How Much a $1000 Investment in Commercial Metals Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Commercial Metals (CMC - Free Report) ten years ago? It may not have been easy to hold on to CMC for all that time, but if you did, how much would your investment be worth today?
Commercial Metals' Business In-Depth
With that in mind, let's take a look at Commercial Metals' main business drivers.
Irving, TX- based Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. It provides these through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
During the second quarter of fiscal 2018, the company completed the exit of the International Marketing and Distribution segment. Commercial Metals announced that the company has realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020. North America includes the company's former Americas Recycling, Americas Mills and Americas Fabrication business segments. Europe comprises the company's former International Mill segment.
North America (87% of fiscal 2021 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 34 scrap metal processing facilities, with 14 locations in Texas, five locations in each of Florida and South Carolina, two locations in each of Georgia, Missouri, and North Carolina, and one location in each of Kansas, Louisiana, Oklahoma and Tennessee.
Americas Mills business includes three EAF mini mills, two EAF micro mills, a rerolling mill, two scrap metal shredders, eight scrap metal processing facilities that directly support the mills, and a railroad salvage operation, all of which are based in the United States. Americas Fabrication business consists of steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar, and produce steel fence posts; warehouses that sell or rent products for the installation of concrete; and facilities that heat-treat steel to strengthen and provide flexibility.
Europe (13%) segment is comprised of mini mill, recycling and fabrication operations located in Poland.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Commercial Metals, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2012 would be worth $3,205.01, or a 220.50% gain, as of August 24, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 194.47% and gold's return of 0.49% over the same time frame.
Analysts are forecasting more upside for CMC too.
Commercial Metals’ earnings estimates for the fourth-quarter fiscal 2022 and for the current fiscal have undergone upward revisions lately. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022. Higher scrap margins on steel products and uncertainty related to pandemic might impact the company’s results in the near term.
The stock is up 14.95% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Commercial Metals Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Commercial Metals (CMC - Free Report) ten years ago? It may not have been easy to hold on to CMC for all that time, but if you did, how much would your investment be worth today?
Commercial Metals' Business In-Depth
With that in mind, let's take a look at Commercial Metals' main business drivers.
Irving, TX- based Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. It provides these through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
During the second quarter of fiscal 2018, the company completed the exit of the International Marketing and Distribution segment. Commercial Metals announced that the company has realigned its reporting structure into two operating segments — North America and Europe — from the beginning of fourth-quarter fiscal 2020. North America includes the company's former Americas Recycling, Americas Mills and Americas Fabrication business segments. Europe comprises the company's former International Mill segment.
North America (87% of fiscal 2021 revenues) segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 34 scrap metal processing facilities, with 14 locations in Texas, five locations in each of Florida and South Carolina, two locations in each of Georgia, Missouri, and North Carolina, and one location in each of Kansas, Louisiana, Oklahoma and Tennessee.
Americas Mills business includes three EAF mini mills, two EAF micro mills, a rerolling mill, two scrap metal shredders, eight scrap metal processing facilities that directly support the mills, and a railroad salvage operation, all of which are based in the United States. Americas Fabrication business consists of steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar, and produce steel fence posts; warehouses that sell or rent products for the installation of concrete; and facilities that heat-treat steel to strengthen and provide flexibility.
Europe (13%) segment is comprised of mini mill, recycling and fabrication operations located in Poland.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Commercial Metals, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in August 2012 would be worth $3,205.01, or a 220.50% gain, as of August 24, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 194.47% and gold's return of 0.49% over the same time frame.
Analysts are forecasting more upside for CMC too.
Commercial Metals’ earnings estimates for the fourth-quarter fiscal 2022 and for the current fiscal have undergone upward revisions lately. The company is poised to gain on robust steel demand, stemming from a growing downstream backlog and solid levels of new construction work entering the project pipeline. Healthy construction markets will support strong rebar and wire rods demand in North America. Steel sales volumes in Europe are anticipated to remain firm on increasing demand from the construction and industrial end market with robust manufacturing activity in Poland. These factors will boost steel shipment levels in North America and Europe and support the company’s results in fiscal 2022. Higher scrap margins on steel products and uncertainty related to pandemic might impact the company’s results in the near term.
The stock is up 14.95% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.