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Commercial Metals (CMC) Dips More Than Broader Markets: What You Should Know

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Commercial Metals (CMC - Free Report) closed the most recent trading day at $19.76, moving -0.7% from the previous trading session. This change lagged the S&P 500's 0.44% loss on the day. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq gained 0.5%.

Heading into today, shares of the manufacturer and recycler of steel and metal products had lost 1.29% over the past month, lagging the Basic Materials sector's gain of 10.43% and the S&P 500's gain of 2.71% in that time.

Wall Street will be looking for positivity from CMC as it approaches its next earnings report date. This is expected to be January 11, 2021. The company is expected to report EPS of $0.54, down 26.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, down 1.81% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.81 per share and revenue of $5.38 billion. These totals would mark changes of -31.44% 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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.08% lower. CMC is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that CMC has a Forward P/E ratio of 10.99 right now. This represents a discount compared to its industry's average Forward P/E of 18.77.

We can also see that CMC currently has a PEG ratio of 3.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Steel - Producers stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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