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Commercial Metals (CMC) Stock Moves -1.09%: What You Should Know

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Commercial Metals (CMC - Free Report) closed at $51.59 in the latest trading session, marking a -1.09% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.53%. At the same time, the Dow lost 1.72%, and the tech-heavy Nasdaq lost 3.27%.

Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had lost 6.76% over the past month. This has lagged the Basic Materials sector's loss of 0.06% and the S&P 500's loss of 1.28% in that time.

Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release, which is expected to be March 23, 2023. The company is expected to report EPS of $1.50, down 1.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.91 billion, down 5.07% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.65 per share and revenue of $8.42 billion. These totals would mark changes of -6.59% and -5.54%, respectively, from last year.

Any recent changes to analyst estimates for Commercial Metals should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.34% higher. Commercial Metals currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Commercial Metals is currently trading at a Forward P/E ratio of 6.82. This valuation marks a discount compared to its industry's average Forward P/E of 10.82.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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