Bank of America Forecasts Strong Price Appreciation for Commercial Metals (NYSE:CMC) Stock

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 objective lifted by stock analysts at Bank of America from $60.00 to $70.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the basic materials company's stock. Bank of America's price target would suggest a potential upside of 20.09% from the company's current price.

A number of other research firms have also recently commented on CMC. Wolfe Research raised shares of Commercial Metals from a "peer perform" rating to an "outperform" rating in a research note on Friday, June 20th. Wells Fargo & Company raised shares of Commercial Metals to a "strong-buy" rating in a research note on Thursday, August 14th. Morgan Stanley set a $57.50 price target on shares of Commercial Metals in a research note on Wednesday, June 25th. JPMorgan Chase & Co. boosted their price objective on shares of Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Finally, Wall Street Zen cut shares of Commercial Metals from a "buy" rating to a "hold" rating in a research report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Commercial Metals presently has an average rating of "Moderate Buy" and a consensus price target of $60.06.

Commercial Metals Price Performance

Shares of Commercial Metals stock traded up $0.45 during trading hours on Monday, reaching $58.29. The company's stock had a trading volume of 277,012 shares, compared to its average volume of 1,077,606. The firm has a 50 day moving average price of $54.88 and a 200-day moving average price of $49.43. Commercial Metals has a one year low of $37.92 and a one year high of $64.53. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.86 and a quick ratio of 2.00. The stock has a market cap of $6.52 billion, a P/E ratio of 187.69, a P/E/G ratio of 1.75 and a beta of 1.33.

Commercial Metals (NYSE:CMC - Get Free Report) last released its quarterly earnings results on Monday, June 23rd. The basic materials company reported $0.74 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 firm had revenue of $2.02 billion for the quarter, compared to analysts' expectations of $2.04 billion. During the same period in the prior year, the firm posted $1.02 earnings per share. Commercial Metals's revenue for the quarter was down 2.8% on a year-over-year basis. On average, analysts predict that Commercial Metals will post 3.09 EPS for the current year.

Institutional Investors Weigh In On Commercial Metals

Large investors have recently modified their holdings of the business. National Bank of Canada FI raised its stake in shares of Commercial Metals by 80.3% during the 1st quarter. National Bank of Canada FI now owns 548 shares of the basic materials company's stock worth $25,000 after acquiring an additional 244 shares in the last quarter. Park Square Financial Group LLC bought a new position in shares of Commercial Metals during the 4th quarter worth approximately $33,000. Heck Capital Advisors LLC bought a new position in shares of Commercial Metals during the 4th quarter worth approximately $34,000. SBI Securities Co. Ltd. raised its stake in shares of Commercial Metals by 282.3% during the 2nd quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company's stock worth $34,000 after acquiring an additional 511 shares in the last quarter. Finally, UMB Bank n.a. raised its stake in shares of Commercial Metals by 51.9% during the 1st quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock worth $36,000 after acquiring an additional 268 shares in the last quarter. 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.

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