Commercial Metals (CMC) closed the most recent trading day at $37.07, moving -0.51% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.15%.
Coming into today, shares of the manufacturer and recycler of steel and metal products had lost 12.35% in the past month. In that same time, the Basic Materials sector lost 6.82%, while the S&P 500 lost 10.24%.
Commercial Metals will be looking to display strength as it nears its next earnings release, which is expected to be October 13, 2022. On that day, Commercial Metals is projected to report earnings of $2.38 per share, which would represent year-over-year growth of 88.89%. Meanwhile, our latest consensus estimate is calling for revenue of $2.38 billion, up 17.28% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Commercial Metals. 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.
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 0.41% lower. Commercial Metals is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Commercial Metals has a Forward P/E ratio of 6.16 right now. Its industry sports an average Forward P/E of 2.7, 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 149, putting it in the bottom 41% 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.
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