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In the latest trading session, Commercial Metals (CMC) closed at $40, marking a -1.38% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.64%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.41%.
Heading into today, shares of the manufacturer and recycler of steel and metal products had gained 1.73% over the past month, lagging the Basic Materials sector's gain of 3.76% and outpacing the S&P 500's gain of 0.73% in that time.
Commercial Metals will be looking to display strength as it nears its next earnings release, which is expected to be June 16, 2022. In that report, analysts expect Commercial Metals to post earnings of $1.97 per share. This would mark year-over-year growth of 89.42%. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 26.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.75 per share and revenue of $8.75 billion. These totals would mark changes of +147.88% and +29.96%, respectively, from last year.
Any recent changes to analyst estimates for Commercial Metals should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 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 1.6% higher. Commercial Metals is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Commercial Metals has a Forward P/E ratio of 4.64 right now. This represents a premium compared to its industry's average Forward P/E of 3.89.
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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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