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CMC vs. NUE: Which US Steel Giant Is the Better Buy Right Now?
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Key Takeaways
CMC delivered a 142% y/y EPS surge in Q1, led by strength in North America Steel and Construction.
CMC's recent acquisitions expand its precast concrete footprint, though near-term costs may pressure EBITDA.
NUE expects higher 1Q26 earnings across segments, driven by improved volumes and realized steel prices.
Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) are two of the leading steel producers in the United States, with strong domestic footprints and similar business models. A recovery in steel prices bodes well for both companies.
For investors seeking to capitalize on this momentum, the key question is: which steel stock stands out, Commercial Metals or Nucor? Let us explore the fundamentals, growth drivers and potential headwinds facing both companies to find out.
The Case for CMC
Irving, TX- based Commercial Metals reported revenues of $2.12 billion in the first quarter of fiscal 2026, reflecting 11% year-over-year growth, attributed to solid demand for the North America Steel Group and Construction Solutions Group segments. However, this was partially offset by soft market conditions for the Europe Steel Group. Even though demand in Europe continued to improve on strong Polish economic growth, import flows negatively impacted average price and margin levels. Backed by the tailwinds, the company reported earnings per share of $1.84 in the quarter, a year-over-year surge of 142%. The Zacks Consensus Estimate for earnings and revenues was pegged at $1.55 and $1.99 billion, respectively.
CMC closed two major acquisitions in December 2025, namely Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company. The addition of these businesses will aid the company’s results in the second quarter of fiscal 2026, offsetting the impacts of seasonal slowdown within key markets. The acquisitions position Commercial Metals as a leading player in the Mid-Atlantic and Southeastern regions, which will operate one of the largest precast concrete platforms in the United States. CMC has identified operational annual run-rate synergies of $25-$30 million from Foley and CP&P by year three, with additional synergies expected to be recognized in the upcoming years. However, the company will also bear several acquisition-related expenses in the fiscal second quarter, like transaction fees and debt issuance costs. CMC expects overall consolidated core EBITDA in the second quarter of fiscal 2026 to decline sequentially.
Commercial Metals also launched the Transform, Advance, Grow Program in September 2024, which focuses on driving higher through-the-cycle margins, earnings, cash flows and ROIC. The company expects an annualized EBITDA benefit of $150 million for fiscal 2026 from the program.
The Case for NUE
Headquartered in Charlotte, NC, Nucor is the biggest steel producer in North America, reporting revenues of $7.69 billion in the fourth quarter of 2025, up 8.6% year over year. Total sales to outside customers for steel mills in the fourth quarter were 4,602,000 tons, up 0.5% year over year. Volumes were down 8% from the prior quarter.
The company anticipates first-quarter 2026 earnings to rise across all segments from the fourth quarter of 2025, with the largest increase expected in the Steel Mills segment. In this segment, the rise is expected to stem from higher volumes and higher realized prices. The Steel Products segment is projected to record higher earnings mainly due to increased volumes. The Raw Materials segment is also likely to have increased earnings in the first quarter of 2026.
The company is executing a series of growth projects to tap significant end-market demand. Nucor is seeing strong demand from construction & infrastructure, military & defense, and energy end markets. It also has a healthy order backlog. NUE has also focused on growth through acquisitions over the past several years.
In June 2024, the company acquired Rytec Corporation, a manufacturer and seller of high-speed, high-performance commercial doors. Nucor expects Rytec and C.H.I. Overhead Doors together to establish an overhead door platform, offering enhanced product variety and solutions for its customers. The recent acquisition of Southwest Data Products expanded its growing portfolio of solutions for data center customers.
How do Estimates Compare for CMC & NUE?
The Zacks Consensus Estimate for Commercial Metals’ fiscal 2026 earnings is pegged at $7.34 per share, indicating year-over-year growth of 134.5%. The earnings estimate of $7.23 for 2027 implies a 1.5% dip. The estimates have been trending north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NUE’s earnings for fiscal 2026 is pegged at $11.51 per share, indicating a year-over-year jump of 49.3%. The 2027 estimate of $13.79 implies growth of 19.8%. The estimates have been trending north over the past 60 days.
In the past year, the CMC stock has gained 56.3% and NUE has climbed 44.7%.
Image Source: Zacks Investment Research
CMC is currently trading at a forward 12-month earnings multiple of 10.49X, lower than its five-year median. NUE is currently trading at a forward 12-month earnings multiple of 14.86X, higher than its five-year median.
Image Source: Zacks Investment Research
CMC or NUE: Which is the Better Pick?
Both Commercial Metals and Nucor are well-positioned to benefit from the recovery in steel prices and focus on growth.
However, CMC has delivered a stronger one-year price performance than NUE. In addition, CMC’s cheaper valuation is attractive. Considering these, CMC seems the smarter bet right now.
Image: Bigstock
CMC vs. NUE: Which US Steel Giant Is the Better Buy Right Now?
Key Takeaways
Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) are two of the leading steel producers in the United States, with strong domestic footprints and similar business models. A recovery in steel prices bodes well for both companies.
For investors seeking to capitalize on this momentum, the key question is: which steel stock stands out, Commercial Metals or Nucor? Let us explore the fundamentals, growth drivers and potential headwinds facing both companies to find out.
The Case for CMC
Irving, TX- based Commercial Metals reported revenues of $2.12 billion in the first quarter of fiscal 2026, reflecting 11% year-over-year growth, attributed to solid demand for the North America Steel Group and Construction Solutions Group segments. However, this was partially offset by soft market conditions for the Europe Steel Group. Even though demand in Europe continued to improve on strong Polish economic growth, import flows negatively impacted average price and margin levels.
Backed by the tailwinds, the company reported earnings per share of $1.84 in the quarter, a year-over-year surge of 142%. The Zacks Consensus Estimate for earnings and revenues was pegged at $1.55 and $1.99 billion, respectively.
CMC closed two major acquisitions in December 2025, namely Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company. The addition of these businesses will aid the company’s results in the second quarter of fiscal 2026, offsetting the impacts of seasonal slowdown within key markets. The acquisitions position Commercial Metals as a leading player in the Mid-Atlantic and Southeastern regions, which will operate one of the largest precast concrete platforms in the United States.
CMC has identified operational annual run-rate synergies of $25-$30 million from Foley and CP&P by year three, with additional synergies expected to be recognized in the upcoming years.
However, the company will also bear several acquisition-related expenses in the fiscal second quarter, like transaction fees and debt issuance costs. CMC expects overall consolidated core EBITDA in the second quarter of fiscal 2026 to decline sequentially.
Commercial Metals also launched the Transform, Advance, Grow Program in September 2024, which focuses on driving higher through-the-cycle margins, earnings, cash flows and ROIC. The company expects an annualized EBITDA benefit of $150 million for fiscal 2026 from the program.
The Case for NUE
Headquartered in Charlotte, NC, Nucor is the biggest steel producer in North America, reporting revenues of $7.69 billion in the fourth quarter of 2025, up 8.6% year over year. Total sales to outside customers for steel mills in the fourth quarter were 4,602,000 tons, up 0.5% year over year. Volumes were down 8% from the prior quarter.
The company anticipates first-quarter 2026 earnings to rise across all segments from the fourth quarter of 2025, with the largest increase expected in the Steel Mills segment. In this segment, the rise is expected to stem from higher volumes and higher realized prices. The Steel Products segment is projected to record higher earnings mainly due to increased volumes. The Raw Materials segment is also likely to have increased earnings in the first quarter of 2026.
The company is executing a series of growth projects to tap significant end-market demand. Nucor is seeing strong demand from construction & infrastructure, military & defense, and energy end markets. It also has a healthy order backlog. NUE has also focused on growth through acquisitions over the past several years.
In June 2024, the company acquired Rytec Corporation, a manufacturer and seller of high-speed, high-performance commercial doors. Nucor expects Rytec and C.H.I. Overhead Doors together to establish an overhead door platform, offering enhanced product variety and solutions for its customers. The recent acquisition of Southwest Data Products expanded its growing portfolio of solutions for data center customers.
How do Estimates Compare for CMC & NUE?
The Zacks Consensus Estimate for Commercial Metals’ fiscal 2026 earnings is pegged at $7.34 per share, indicating year-over-year growth of 134.5%. The earnings estimate of $7.23 for 2027 implies a 1.5% dip. The estimates have been trending north over the past 60 days.
The Zacks Consensus Estimate for NUE’s earnings for fiscal 2026 is pegged at $11.51 per share, indicating a year-over-year jump of 49.3%. The 2027 estimate of $13.79 implies growth of 19.8%. The estimates have been trending north over the past 60 days.
CMC & NUE: Price Performance & Valuation Comparisons
In the past year, the CMC stock has gained 56.3% and NUE has climbed 44.7%.
CMC is currently trading at a forward 12-month earnings multiple of 10.49X, lower than its five-year median. NUE is currently trading at a forward 12-month earnings multiple of 14.86X, higher than its five-year median.
CMC or NUE: Which is the Better Pick?
Both Commercial Metals and Nucor are well-positioned to benefit from the recovery in steel prices and focus on growth.
However, CMC has delivered a stronger one-year price performance than NUE. In addition, CMC’s cheaper valuation is attractive. Considering these, CMC seems the smarter bet right now.
CMC has a Zacks Rank #2 (Buy) at present, which further supports our thesis. NUE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.