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Commercial Metals (CMC) Dips More Than Broader Markets: What You Should Know
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Commercial Metals (CMC - Free Report) closed at $48.96 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's daily loss of 1.45%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had gained 3.6% in the past month. In that same time, the Basic Materials sector gained 12.86%, while the S&P 500 lost 1.68%.
Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which is expected to be January 9, 2023. In that report, analysts expect Commercial Metals to post earnings of $2.06 per share. This would mark year-over-year growth of 27.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 9.22% from the year-ago period.
CMC's full-year Zacks Consensus Estimates are calling for earnings of $6.85 per share and revenue of $8.02 billion. These results would represent year-over-year changes of -16.36% and -9.99%, respectively.
It is also important to note the recent changes to analyst estimates for Commercial Metals. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Commercial Metals currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Commercial Metals's current valuation metrics, including its Forward P/E ratio of 7.27. This valuation marks a premium compared to its industry's average Forward P/E of 3.84.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Commercial Metals (CMC) Dips More Than Broader Markets: What You Should Know
Commercial Metals (CMC - Free Report) closed at $48.96 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's daily loss of 1.45%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 5.88%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had gained 3.6% in the past month. In that same time, the Basic Materials sector gained 12.86%, while the S&P 500 lost 1.68%.
Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which is expected to be January 9, 2023. In that report, analysts expect Commercial Metals to post earnings of $2.06 per share. This would mark year-over-year growth of 27.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 9.22% from the year-ago period.
CMC's full-year Zacks Consensus Estimates are calling for earnings of $6.85 per share and revenue of $8.02 billion. These results would represent year-over-year changes of -16.36% and -9.99%, respectively.
It is also important to note the recent changes to analyst estimates for Commercial Metals. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Commercial Metals currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Commercial Metals's current valuation metrics, including its Forward P/E ratio of 7.27. This valuation marks a premium compared to its industry's average Forward P/E of 3.84.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.