In the latest trading session, Commercial Metals (CMC - Free Report) closed at $20.75, marking a +0.88% move from the previous day. This change outpaced the S&P 500's 0.81% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 1.27%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 5.12% in the past month. In that same time, the Basic Materials sector gained 1.99%, while the S&P 500 gained 5.06%.
Investors will be hoping for strength from CMC as it approaches its next earnings release. On that day, CMC is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $1.38 billion, down 10.75% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CMC. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 2.91% higher within the past month. CMC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CMC currently has a Forward P/E ratio of 10.59. This represents a discount compared to its industry's average Forward P/E of 15.35.
Meanwhile, CMC's PEG ratio is currently 5.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.