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Commercial Metals (CMC) Outpaces Stock Market Gains: What You Should Know

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Commercial Metals (CMC - Free Report) closed at $30.76 in the latest trading session, marking a +0.69% move from the prior day. This move outpaced the S&P 500's daily gain of 0.19%.

Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 4.12% over the past month. This has outpaced the Basic Materials sector's gain of 3.07% and the S&P 500's gain of 0.37% in that time.

Investors will be hoping for strength from CMC as it approaches its next earnings release, which is expected to be June 17, 2021. On that day, CMC is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 23.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.68 billion, up 24.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $6.17 billion. These totals would mark changes of -7.2% and +12.74%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CMC. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CMC is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, CMC is currently trading at a Forward P/E ratio of 12.45. For comparison, its industry has an average Forward P/E of 7.22, which means CMC is trading at a premium to the group.

We can also see that CMC currently has a PEG ratio of 3.65. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 0.52 based on yesterday's closing prices.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.

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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