We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Commercial Metals (CMC) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Commercial Metals (CMC - Free Report) closed at $52.15 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 6.11% over the past month. This has lagged the Basic Materials sector's gain of 8.45% and outpaced the S&P 500's gain of 2.3% in that time.
Commercial Metals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.63, up 6.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.92 billion, down 4.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $8.41 billion, which would represent changes of -8.18% and -5.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Commercial Metals. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 11.53% higher within the past month. 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 6.91. For comparison, its industry has an average Forward P/E of 9.92, which means Commercial Metals is trading at a discount to the group.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.
To follow CMC in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Commercial Metals (CMC) Gains But Lags Market: What You Should Know
Commercial Metals (CMC - Free Report) closed at $52.15 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.89%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 6.11% over the past month. This has lagged the Basic Materials sector's gain of 8.45% and outpaced the S&P 500's gain of 2.3% in that time.
Commercial Metals will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.63, up 6.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.92 billion, down 4.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $8.41 billion, which would represent changes of -8.18% and -5.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Commercial Metals. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 11.53% higher within the past month. 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 6.91. For comparison, its industry has an average Forward P/E of 9.92, which means Commercial Metals is trading at a discount to the group.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% 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.
To follow CMC in the coming trading sessions, be sure to utilize Zacks.com.