Commercial Metals (NYSE:CMC) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Commercial Metals to “Hold” from “Buy,” although analyst sentiment remains broadly positive: nine analysts rate the stock a Buy, five a Hold and one a Sell, with a consensus target price of $80.45.
• Commercial Metals reported quarterly EPS of $2.09 and revenue of $2.66 billion, beating estimates of $1.95 EPS and $2.56 billion in revenue; revenue increased 25.7% year over year.
• The company authorized a $600 million share-repurchase program, allowing it to buy back up to 7.5% of outstanding shares, while institutional investors own 86.9% of the stock.

Commercial Metals (NYSE:CMC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other research firms also recently weighed in on CMC. Bank of America reduced their price target on shares of Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Weiss Ratings cut Commercial Metals from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 2nd. The Goldman Sachs Group restated a "buy" rating and issued a $85.00 target price on shares of Commercial Metals in a report on Thursday, August 6th. Barclays raised their price objective on shares of Commercial Metals from $75.00 to $80.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Finally, Wells Fargo & Company reaffirmed an "underperform" rating and set a $70.00 price target on shares of Commercial Metals in a research report on Friday. Nine research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Commercial Metals has an average rating of "Moderate Buy" and a consensus target price of $80.45.

Commercial Metals Price Performance

Shares of CMC opened at $64.95 on Friday. The company has a market capitalization of $7.19 billion, a P/E ratio of 11.07, a P/E/G ratio of 0.25 and a beta of 1.53. The business's 50-day moving average is $66.80 and its two-hundred day moving average is $68.29. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.54 and a current ratio of 2.34. Commercial Metals has a fifty-two week low of $55.70 and a fifty-two week high of $84.87.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 EPS for the quarter, topping the consensus estimate of $1.95 by $0.14. The business had revenue of $2.66 billion for the quarter, compared to analyst estimates of $2.56 billion. Commercial Metals had a return on equity of 17.00% and a net margin of 6.98%. The business's quarterly revenue was up 25.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.37 EPS. Research analysts predict that Commercial Metals will post 7.67 earnings per share for the current year.

Commercial Metals announced that its Board of Directors has approved a share buyback plan on Wednesday, August 5th that permits the company to buy back $600.00 million in shares. This repurchase authorization permits the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Share repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Commercial Metals

In other Commercial Metals news, Director John McPherson purchased 1,390 shares of the business's stock in a transaction on Thursday, August 13th. The shares were bought at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the purchase, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This represents a 6.77% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.62% of the company's stock.

Institutional Trading of Commercial Metals

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of Commercial Metals in the 2nd quarter valued at $954,989,000. Bank of America Corp DE acquired a new stake in shares of Commercial Metals in the 2nd quarter worth $84,320,000. Bank of New York Mellon Corp purchased a new stake in shares of Commercial Metals in the second quarter valued at about $59,572,000. Jupiter Topco LLC purchased a new position in Commercial Metals during the second quarter worth about $36,800,000. Finally, NFJ Investment Group LLC purchased a new stake in Commercial Metals in the 2nd quarter valued at approximately $34,122,000. Institutional investors and hedge funds own 86.90% of the company's stock.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Fourth-quarter results exceeded expectations. CMC reported adjusted EPS of $2.09, above the roughly $1.95–$1.97 consensus, while revenue rose 25.7% year over year to $2.66 billion, exceeding estimates by approximately $90 million. CMC Reports Fourth Quarter and Full Year Fiscal 2026 Results
• Positive Sentiment: Full-year profitability improved substantially. Fiscal 2026 net earnings reached $655.8 million, while consolidated core EBITDA increased to $1.4 billion from $837.3 million in fiscal 2025, reinforcing the company’s operating and cash-generation momentum. CMC closes out fiscal year with summer profits
• Positive Sentiment: Management sees durable end-market demand. CMC highlighted strong demand from data centers and semiconductor factories, while its recycling, steel and construction-products businesses supported summer profitability. These trends could benefit volumes and infrastructure-related demand. Commercial Metals Sees Strong Demand From Data Centers, Chip Factories
• Neutral Sentiment: Analysts and market commentary remain mixed. Zacks characterizes CMC as a strong growth stock, and management’s earnings-call commentary signaled further growth. However, other analysis considers the shares insufficiently attractive even as fundamentals improve, reflecting valuation and steel-cycle concerns. Here's Why Commercial Metals is a Strong Growth Stock
• Negative Sentiment: The muted reaction may reflect cyclical and valuation risk. Despite the earnings beat and stronger outlook, investors may be concerned about metal-price volatility, construction demand and whether the improvement can persist. CMC’s shares remain below their 50-day and 200-day moving averages, indicating lingering technical pressure. Commercial Metals Company: Still Not Attractive but Getting Better

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC's product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.

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