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Commercial Metals (CMC) closed the most recent trading day at $39.47, moving -0.65% from the previous trading session. This change was narrower than the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had lost 2.65% over the past month. This has lagged the Basic Materials sector's gain of 1.48% and the S&P 500's gain of 0.32% 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. The company is expected to report EPS of $1.28, up 23.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 26.91% from the prior-year quarter.
CMC's full-year Zacks Consensus Estimates are calling for earnings of $8.75 per share and revenue of $8.75 billion. These results would represent year-over-year changes of +147.88% and +29.96%, respectively.
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. 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 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. The Zacks Consensus EPS estimate has moved 1.6% higher within the past month. Commercial Metals is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Commercial Metals has a Forward P/E ratio of 4.54 right now. For comparison, its industry has an average Forward P/E of 3.49, which means Commercial Metals is trading at a premium to the group.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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