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Commercial Metals (CMC) Stock Moves -0.34%: What You Should Know

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Commercial Metals (CMC - Free Report) closed at $37.59 in the latest trading session, marking a -0.34% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Heading into today, shares of the manufacturer and recycler of steel and metal products had lost 12.91% over the past month, lagging the Basic Materials sector's loss of 6.49% and the S&P 500's loss of 9.06% in that time.

Commercial Metals will be looking to display strength as it nears its next earnings release, which is expected to be October 13, 2022. On that day, Commercial Metals is projected to report earnings of $2.29 per share, which would represent year-over-year growth of 81.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.38 billion, up 17.28% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Commercial Metals. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 has moved 0.41% lower. Commercial Metals currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 6.24. This represents a premium compared to its industry's average Forward P/E of 2.72.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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