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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 $48.76 in the latest trading session, marking a +0.89% move from the prior day. This move lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 1.81% in the past month. In that same time, the Basic Materials sector lost 0.18%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Commercial Metals currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 7.06. Its industry sports an average Forward P/E of 3.65, 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 26, which puts it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Commercial Metals (CMC) Gains But Lags Market: What You Should Know
Commercial Metals (CMC - Free Report) closed at $48.76 in the latest trading session, marking a +0.89% move from the prior day. This move lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 1.81% in the past month. In that same time, the Basic Materials sector lost 0.18%, while the S&P 500 lost 4.4%.
Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Commercial Metals currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 7.06. Its industry sports an average Forward P/E of 3.65, 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 26, which puts it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.