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Commercial Metals (CMC) Gains But Lags Market: What You Should Know
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In the latest trading session, Commercial Metals (CMC - Free Report) closed at $20.79, marking a +0.43% move from the previous day. This move lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 2.01%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 10.16% in the past month. In that same time, the Basic Materials sector gained 2.94%, while the S&P 500 gained 2.11%.
Investors will be hoping for strength from CMC as it approaches its next earnings release. In that report, analysts expect CMC to post earnings of $0.53 per share. This would mark a year-over-year decline of 27.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, down 1.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.38 billion. These totals would mark changes of -29.17% and -1.77%, respectively, from last year.
Any recent changes to analyst estimates for CMC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 6.04% lower within the past month. CMC currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CMC currently has a Forward P/E ratio of 11.08. This valuation marks a discount compared to its industry's average Forward P/E of 18.03.
Meanwhile, CMC's PEG ratio is currently 3.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Producers was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% 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
In the latest trading session, Commercial Metals (CMC - Free Report) closed at $20.79, marking a +0.43% move from the previous day. This move lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 2.01%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 10.16% in the past month. In that same time, the Basic Materials sector gained 2.94%, while the S&P 500 gained 2.11%.
Investors will be hoping for strength from CMC as it approaches its next earnings release. In that report, analysts expect CMC to post earnings of $0.53 per share. This would mark a year-over-year decline of 27.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, down 1.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.87 per share and revenue of $5.38 billion. These totals would mark changes of -29.17% and -1.77%, respectively, from last year.
Any recent changes to analyst estimates for CMC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 6.04% lower within the past month. CMC currently has a Zacks Rank of #3 (Hold).
Digging into valuation, CMC currently has a Forward P/E ratio of 11.08. This valuation marks a discount compared to its industry's average Forward P/E of 18.03.
Meanwhile, CMC's PEG ratio is currently 3.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Producers was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% 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.