Commercial Metals (CMC) closed at $32.94 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily loss of 0.87%.
Prior to today's trading, shares of the manufacturer and recycler of steel and metal products had gained 9.16% over the past month. This has lagged the Basic Materials sector's gain of 12.57% and outpaced the S&P 500's gain of 1.61% in that time.
Wall Street will be looking for positivity from CMC as it approaches its next earnings report date. In that report, analysts expect CMC to post earnings of $0.73 per share. This would mark year-over-year growth of 23.73%. Meanwhile, our latest consensus estimate is calling for revenue of $1.68 billion, up 24.99% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $6.17 billion. These totals would mark changes of -7.2% and +12.74%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CMC. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.2% higher within the past month. CMC is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, CMC currently has a Forward P/E ratio of 13.22. This represents a premium compared to its industry's average Forward P/E of 8.71.
Also, we should mention that CMC has a PEG ratio of 3.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMC's industry had an average PEG ratio of 0.55 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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