Commercial Metals (CMC) closed at $42.51 in the latest trading session, marking a -0.26% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 7.57% over the past month. This has lagged the Basic Materials sector's gain of 8.36% and outpaced the S&P 500's gain of 3.65% in that time.
Wall Street will be looking for positivity from Commercial Metals as it approaches its next earnings report date. The company is expected to report EPS of $2.58, up 104.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 19.31% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.14 per share and revenue of $8.93 billion. These totals would mark changes of +187.25% and +32.68%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Commercial Metals. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 8.58% higher. Commercial Metals currently has a Zacks Rank of #3 (Hold).
Investors should also note Commercial Metals's current valuation metrics, including its Forward P/E ratio of 4.2. Its industry sports an average Forward P/E of 2.96, so we one might conclude that Commercial Metals is trading at a premium comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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