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Constellium (CSTM) Stock Sinks As Market Gains: What You Should Know

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Constellium (CSTM - Free Report) closed the most recent trading day at $14.44, moving -0.41% from the previous trading session. This change lagged the S&P 500's 0.33% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.

Coming into today, shares of the aluminum company had gained 5.15% in the past month. In that same time, the Industrial Products sector lost 1.2%, while the S&P 500 gained 5.67%.

Investors will be hoping for strength from Constellium as it approaches its next earnings release, which is expected to be April 26, 2023. On that day, Constellium is projected to report earnings of $0.27 per share, which would represent a year-over-year decline of 70.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, down 24.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $7.14 billion, which would represent changes of -38.71% and -16.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Constellium. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Constellium currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Constellium is holding a Forward P/E ratio of 10.9. This valuation marks a discount compared to its industry's average Forward P/E of 11.46.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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