Commercial Metals (CMC) is a Top-Ranked Growth Stock: Should You Buy?
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Commercial Metals (CMC)
Irving, TX- based Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. It provides these through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
CMC is a Zacks Rank #2 (Buy) stock, with a Growth Style Score of B and VGM Score of A. Earnings are expected to grow 153% year-over-year for the current fiscal year, with sales growth of 31.5%.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $2.64 to $8.93 per share. CMC boasts an average earnings surprise of 15.1%.
Commercial Metals is also cash rich. The company has generated cash flow growth of 21.1%, and is expected to report cash flow expansion of 30.7% in 2022.
Investors should take the time to consider CMC for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
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