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Constellium (CSTM) Dips More Than Broader Markets: What You Should Know

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Constellium (CSTM - Free Report) closed the most recent trading day at $16.62, moving -0.6% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.

Prior to today's trading, shares of the aluminum company had gained 9.07% over the past month. This has lagged the Industrial Products sector's gain of 10.05% and outpaced the S&P 500's gain of 4.22% in that time.

Investors will be hoping for strength from Constellium as it approaches its next earnings release. In that report, analysts expect Constellium to post earnings of $0.38 per share. This would mark a year-over-year decline of 32.14%. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, down 16.27% from the year-ago period.

CSTM's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $7.8 billion. These results would represent year-over-year changes of -39.17% and -8.95%, respectively.

Investors might also notice recent changes to analyst estimates for Constellium. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Constellium is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Constellium is holding a Forward P/E ratio of 12.67. Its industry sports an average Forward P/E of 12.67, so we one might conclude that Constellium is trading at a no noticeable deviation comparatively.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 46% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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