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Commercial Metals (CMC) Gains But Lags Market: What You Should Know

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Commercial Metals (CMC - Free Report) closed at $56.04 in the latest trading session, marking a +0.05% move from the prior day. The stock lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 7.94%.

Coming into today, shares of the manufacturer and recycler of steel and metal products had gained 14.31% in the past month. In that same time, the Basic Materials sector gained 12.32%, while the S&P 500 gained 7.41%.

Wall Street will be looking for positivity from Commercial Metals as it approaches its next earnings report date. On that day, Commercial Metals is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 6.54%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.52 per share and revenue of $8.51 billion, which would represent changes of -8.18% and -4.48%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Commercial Metals. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 11.53% higher. Commercial Metals is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 7.45. Its industry sports an average Forward P/E of 11.2, so we one might conclude that Commercial Metals is trading at a discount comparatively.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% 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 Zacks.com.


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