Commercial Metals (NYSE:CMC) Rating Increased to Buy at Wall Street Zen

Key Points

• Commercial Metals' stock rating has been upgraded from "hold" to "buy" by analysts at Wall Street Zen, reflecting increased confidence in the company's performance.
• Several research firms have set varying price targets for Commercial Metals, with Bank of America raising theirs from $60.00 to $70.00 while others suggest a range between $54.00 and $57.50.
• Despite a recent increase in stock price to $58.74, the company reported earnings that missed expectations, with a revenue decline of 2.8% year-over-year.

Commercial Metals (NYSE:CMC - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Friday.

A number of other research firms have also recently weighed in on CMC. Morgan Stanley set a $57.50 price objective on Commercial Metals in a research report on Wednesday, June 25th. UBS Group upped their target price on Commercial Metals from $48.00 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 13th. Bank of America upped their price objective on Commercial Metals from $60.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, September 15th. Jefferies Financial Group reissued a "buy" rating on shares of Commercial Metals in a report on Friday, June 20th. Finally, JPMorgan Chase & Co. increased their target price on Commercial Metals from $52.00 to $54.00 and gave the company a "neutral" rating in a report on Monday, July 14th. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $60.39.

Commercial Metals Stock Performance

CMC stock traded up $1.11 during trading on Friday, hitting $58.74. 540,758 shares of the company traded hands, compared to its average volume of 965,850. The company has a market cap of $6.57 billion, a PE ratio of 189.47, a P/E/G ratio of 2.02 and a beta of 1.33. Commercial Metals has a 1 year low of $37.92 and a 1 year high of $64.53. The stock's 50-day simple moving average is $56.11 and its 200 day simple moving average is $50.21. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.86 and a quick ratio of 2.00.

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

Hedge Funds Weigh In On Commercial Metals

Several large investors have recently modified their holdings of CMC. National Bank of Canada FI increased its position in shares of Commercial Metals by 80.3% during the first quarter. National Bank of Canada FI now owns 548 shares of the basic materials company's stock worth $25,000 after buying an additional 244 shares during the period. Park Square Financial Group LLC acquired a new position in shares of Commercial Metals during the fourth quarter valued at about $33,000. SBI Securities Co. Ltd. grew its holdings in shares of Commercial Metals by 282.3% during the second quarter. SBI Securities Co. Ltd. now owns 692 shares of the basic materials company's stock valued at $34,000 after buying an additional 511 shares during the last quarter. UMB Bank n.a. grew its holdings in shares of Commercial Metals by 51.9% during the first quarter. UMB Bank n.a. now owns 784 shares of the basic materials company's stock valued at $36,000 after buying an additional 268 shares during the last quarter. Finally, Signaturefd LLC grew its holdings in shares of Commercial Metals by 51.4% during the second quarter. Signaturefd LLC now owns 890 shares of the basic materials company's stock valued at $44,000 after buying an additional 302 shares during 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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