Bank of America Issues Positive Forecast for Commercial Metals (NYSE:CMC) Stock Price

Key Points

• Bank of America has raised its price target for Commercial Metals (NYSE:CMC) from $60.00 to $70.00, indicating a potential upside of 20.09% from its current price.
• Several research firms have updated their ratings on CMC, with Wolfe Research upgrading to "outperform" and Wells Fargo raising its rating to "strong-buy."
• Commercial Metals reported a net margin of 0.48% and revenue of $2.02 billion for the last quarter, falling short of analyst expectations.

Commercial Metals (NYSE:CMC - Get Free Report) had its price target upped by analysts at Bank of America from $60.00 to $70.00 in a report released on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the basic materials company's stock. Bank of America's price target would indicate a potential upside of 20.26% from the stock's current price.

CMC has been the subject of a number of other reports. BMO Capital Markets reissued a "market perform" rating and set a $55.00 price objective (down from $57.00) on shares of Commercial Metals in a research report on Tuesday, June 24th. UBS Group raised their price objective on Commercial Metals from $48.00 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 13th. Jefferies Financial Group reissued a "buy" rating on shares of Commercial Metals in a research report on Friday, June 20th. Wells Fargo & Company raised Commercial Metals to a "strong-buy" rating in a research report on Thursday, August 14th. Finally, Wall Street Zen downgraded Commercial Metals from a "buy" rating to a "hold" rating in a research report on Saturday, September 13th. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Commercial Metals currently has a consensus rating of "Moderate Buy" and a consensus target price of $60.39.

Commercial Metals Trading Down 2.5%

Shares of CMC traded down $1.46 during midday trading on Monday, reaching $58.21. The company had a trading volume of 2,869,608 shares, compared to its average volume of 894,835. Commercial Metals has a 1-year low of $37.92 and a 1-year high of $64.53. The stock has a market cap of $6.52 billion, a PE ratio of 187.76, a price-to-earnings-growth ratio of 2.09 and a beta of 1.33. The firm has a 50 day simple moving average of $55.54 and a 200-day simple moving average of $49.80. The company has a quick ratio of 2.00, a current ratio of 2.86 and a debt-to-equity ratio of 0.32.

Commercial Metals (NYSE:CMC - Get Free Report) last issued its earnings results on Monday, June 23rd. The basic materials company reported $0.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.85 by ($0.11). Commercial Metals had a return on equity of 7.45% and a net margin of 0.48%.The company had revenue of $2.02 billion during the quarter, compared to analyst estimates of $2.04 billion. During the same period last year, the business earned $1.02 earnings per share. The firm's revenue was down 2.8% compared to the same quarter last year. Research analysts forecast that Commercial Metals will post 3.09 EPS for the current fiscal year.

Hedge Funds Weigh In On Commercial Metals

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. State Street Corp boosted its stake in shares of Commercial Metals by 1.2% in the 2nd quarter. State Street Corp now owns 6,109,178 shares of the basic materials company's stock valued at $299,898,000 after buying an additional 71,703 shares during the period. Fuller & Thaler Asset Management Inc. lifted its stake in Commercial Metals by 14.9% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 4,161,292 shares of the basic materials company's stock worth $191,461,000 after purchasing an additional 539,309 shares during the last quarter. Franklin Resources Inc. lifted its stake in Commercial Metals by 10.0% during the second quarter. Franklin Resources Inc. now owns 3,193,930 shares of the basic materials company's stock worth $156,215,000 after purchasing an additional 290,256 shares during the last quarter. Victory Capital Management Inc. lifted its stake in Commercial Metals by 27.5% during the first quarter. Victory Capital Management Inc. now owns 3,089,313 shares of the basic materials company's stock worth $142,139,000 after purchasing an additional 666,886 shares during the last quarter. Finally, American Century Companies Inc. lifted its stake in Commercial Metals by 7.8% during the second quarter. American Century Companies Inc. now owns 1,711,656 shares of the basic materials company's stock worth $83,717,000 after purchasing an additional 124,397 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

About Commercial Metals

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers.