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Commercial Metals' Unit to Acquire Recycling Facilities
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Commercial Metals Company’s (CMC - Free Report) fully owned subsidiary, Owen Steel Company of South Carolina has agreed to acquire certain recycling facilities from Omnisource Corporation. OmniSource is a fully owned subsidiary of Steel Dynamics. The assets consist of seven recycling facilities located in the southeast U.S. that are in close proximity to Commercial Metals’ mini mill in Cayce, SC.
This transaction, subject to the customary closing conditions, is expected to close within 50 days. With this agreement, Commercial Metals is on track to support its mill operations with a reliable, low-cost source of raw material. The company expects to realize synergies from the buyout with its existing operations in South Carolina.
Commercial Metal makes, recycles, and markets steel and metal products, and related materials and services in the U.S. and internationally. The company has outperformed the Zacks categorized Steel Producers industry over the past three months. The company’s shares gained 36.9% over this period, compared with the industry's return of 32%.
The company expects improvement in market conditions during fiscal 2017. The company particularly anticipates benefitting from improvements in the non-residential construction segment, one of its key end markets. Moreover, an expected increase in infrastructure investments will be beneficial for the company.
However, the company is exposed to pricing pressure. Decrease in the average selling prices led to margin compression across certain segments in the last reported quarter.
Commercial Metals currently holds a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the steel space include Olympic Steel Co. (ZEUS - Free Report) , Nucor Corporation (NUE - Free Report) and AK Steel Holding Corp. .
While Olympic Steel sports a Zacks Rank #1 (Strong Buy), Nucor and AK Steel both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Olympic Steel has an expected earnings growth of around 90.6% for the current year.
Nucor has an expected earnings growth rate of around 27.2% for the current year.
AK Steel has an expected long-term growth of 5%.
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Commercial Metals' Unit to Acquire Recycling Facilities
Commercial Metals Company’s (CMC - Free Report) fully owned subsidiary, Owen Steel Company of South Carolina has agreed to acquire certain recycling facilities from Omnisource Corporation. OmniSource is a fully owned subsidiary of Steel Dynamics. The assets consist of seven recycling facilities located in the southeast U.S. that are in close proximity to Commercial Metals’ mini mill in Cayce, SC.
This transaction, subject to the customary closing conditions, is expected to close within 50 days. With this agreement, Commercial Metals is on track to support its mill operations with a reliable, low-cost source of raw material. The company expects to realize synergies from the buyout with its existing operations in South Carolina.
Commercial Metal makes, recycles, and markets steel and metal products, and related materials and services in the U.S. and internationally. The company has outperformed the Zacks categorized Steel Producers industry over the past three months. The company’s shares gained 36.9% over this period, compared with the industry's return of 32%.
The company expects improvement in market conditions during fiscal 2017. The company particularly anticipates benefitting from improvements in the non-residential construction segment, one of its key end markets. Moreover, an expected increase in infrastructure investments will be beneficial for the company.
However, the company is exposed to pricing pressure. Decrease in the average selling prices led to margin compression across certain segments in the last reported quarter.
Commercial Metals Company Price and Consensus
Commercial Metals Company Price and Consensus | Commercial Metals Company Quote
Commercial Metals currently holds a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the steel space include Olympic Steel Co. (ZEUS - Free Report) , Nucor Corporation (NUE - Free Report) and AK Steel Holding Corp. .
While Olympic Steel sports a Zacks Rank #1 (Strong Buy), Nucor and AK Steel both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel has an expected earnings growth of around 90.6% for the current year.
Nucor has an expected earnings growth rate of around 27.2% for the current year.
AK Steel has an expected long-term growth of 5%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>