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Commercial Metals (CMC) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Commercial Metals (CMC - Free Report) closed at $36.96, marking a +0.11% move from the previous day. This change outpaced the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Heading into today, shares of the manufacturer and recycler of steel and metal products had gained 1.12% over the past month, outpacing the Basic Materials sector's loss of 0.33% and the S&P 500's loss of 4.02% in that time.

Investors will be hoping for strength from Commercial Metals as it approaches its next earnings release. The company is expected to report EPS of $1.08, up 63.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.82 billion, up 24.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.72 per share and revenue of $7.71 billion. These totals would mark changes of +62.04% and +14.6%, respectively, from last year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 26.05% higher. Commercial Metals is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Commercial Metals currently has a Forward P/E ratio of 6.45. This represents a premium compared to its industry's average Forward P/E of 4.94.

The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

To follow CMC in the coming trading sessions, be sure to utilize Zacks.com.


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