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Commercial Metals (CMC) Gains But Lags Market: What You Should Know

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Commercial Metals (CMC - Free Report) closed at $48.80 in the latest trading session, marking a +0.47% move from the prior day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.16%.

Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 3.36% over the past month. This has outpaced the Basic Materials sector's gain of 0.55% and the S&P 500's gain of 0.09% in that time.

Wall Street will be looking for positivity from Commercial Metals as it approaches its next earnings report date. This is expected to be January 9, 2023. On that day, Commercial Metals is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 27.16%. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 9.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.85 per share and revenue of $8.02 billion. These totals would mark changes of -16.36% and -9.99%, respectively, from last year.

Any recent changes to analyst estimates for Commercial Metals should also be noted by investors. Recent revisions tend to reflect the latest 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 8.73% higher. Commercial Metals is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Commercial Metals is currently trading at a Forward P/E ratio of 7.09. This valuation marks a premium compared to its industry's average Forward P/E of 3.88.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CMC in the coming trading sessions, be sure to utilize Zacks.com.


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