Zacks Research Analysts Lift Earnings Estimates for CMC

Key Points

• Zacks Research raised Commercial Metals’ earnings estimates, increasing Q1 2027 EPS to $1.81 from $1.79, FY2027 EPS to $7.18, and FY2028 EPS to $7.36. Despite the revisions, Zacks maintained a “Hold” rating.
• Analyst sentiment is generally positive, with nine Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $81.18.
• Commercial Metals recently beat quarterly expectations, reporting $1.73 EPS and $2.48 billion in revenue, while also maintaining a $0.20 quarterly dividend and authorizing a $600 million share buyback covering up to 7.5% of shares.

Commercial Metals Company (NYSE:CMC - Free Report) - Stock analysts at Zacks Research raised their Q1 2027 EPS estimates for shares of Commercial Metals in a report issued on Tuesday, September 8th. Zacks Research analyst Team now anticipates that the basic materials company will post earnings per share of $1.81 for the quarter, up from their previous estimate of $1.79. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Commercial Metals' current full-year earnings is $6.64 per share. Zacks Research also issued estimates for Commercial Metals' Q2 2027 earnings at $1.45 EPS, Q3 2027 earnings at $1.84 EPS, Q4 2027 earnings at $2.07 EPS, FY2027 earnings at $7.18 EPS, Q1 2028 earnings at $1.83 EPS, Q2 2028 earnings at $1.55 EPS, Q3 2028 earnings at $1.87 EPS, Q4 2028 earnings at $2.11 EPS and FY2028 earnings at $7.36 EPS.

A number of other equities research analysts have also recently commented on CMC. BNP Paribas Exane upgraded Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 target price on the stock in a report on Wednesday, July 8th. Citigroup cut their price target on Commercial Metals from $85.00 to $75.00 and set a "buy" rating for the company in a report on Tuesday, July 7th. UBS Group raised Commercial Metals from a "neutral" rating to a "buy" rating and increased their price objective for the company from $79.00 to $89.00 in a research note on Wednesday, May 13th. Bank of America dropped their price objective on Commercial Metals from $84.00 to $78.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Finally, Wells Fargo & Company boosted their target price on shares of Commercial Metals from $77.00 to $80.00 and gave the company an "equal weight" rating in a research note on Friday, June 26th. Nine investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $81.18.

Commercial Metals Trading Up 0.6%

Shares of Commercial Metals stock opened at $70.70 on Wednesday. Commercial Metals has a 1 year low of $53.08 and a 1 year high of $84.87. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. The business has a 50 day moving average price of $67.96 and a 200 day moving average price of $68.75. The company has a market capitalization of $7.82 billion, a P/E ratio of 13.31, a P/E/G ratio of 0.37 and a beta of 1.52.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings results on Thursday, June 25th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.70 by $0.03. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The company had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same quarter in the prior year, the firm earned $0.74 earnings per share. The company's revenue for the quarter was up 22.9% compared to the same quarter last year.

Commercial Metals Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th were issued a dividend of $0.20 per share. The ex-dividend date was Monday, July 6th. This represents a $0.80 annualized dividend and a dividend yield of 1.1%. Commercial Metals's dividend payout ratio (DPR) is 15.07%.

Commercial Metals announced that its Board of Directors has initiated a stock buyback plan on Wednesday, August 5th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the basic materials company to purchase up to 7.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, CEO Peter R. Matt bought 8,230 shares of Commercial Metals stock in a transaction that occurred on Friday, July 10th. The shares were purchased at an average cost of $61.30 per share, for a total transaction of $504,499.00. Following the completion of the transaction, the chief executive officer owned 181,522 shares of the company's stock, valued at $11,127,298.60. This represents a 4.75% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John R. Mcpherson purchased 1,390 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was acquired 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 owned 21,927 shares in the company, valued at $1,576,989.84. The trade was a 6.77% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.62% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Royal Bank of Canada boosted its position in shares of Commercial Metals by 1.4% in the first quarter. Royal Bank of Canada now owns 90,989 shares of the basic materials company's stock worth $4,186,000 after acquiring an additional 1,219 shares during the last quarter. Amundi raised its stake in Commercial Metals by 13.3% during the first quarter. Amundi now owns 2,480 shares of the basic materials company's stock worth $114,000 after purchasing an additional 291 shares during the period. Jones Financial Companies Lllp raised its stake in Commercial Metals by 614.9% during the first quarter. Jones Financial Companies Lllp now owns 11,767 shares of the basic materials company's stock worth $541,000 after purchasing an additional 10,121 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Commercial Metals by 5.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,033,514 shares of the basic materials company's stock valued at $47,552,000 after purchasing an additional 56,875 shares during the last quarter. Finally, Empowered Funds LLC boosted its holdings in shares of Commercial Metals by 1.8% in the 1st quarter. Empowered Funds LLC now owns 53,305 shares of the basic materials company's stock valued at $2,453,000 after purchasing an additional 941 shares during the last quarter. 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: Zacks lifted its FY2027 EPS forecast to $7.18 from $7.13 and its FY2028 estimate to $7.36 from $7.32. Quarterly estimates for fiscal 2027 and 2028 were also increased by $0.01–$0.02 per share, including Q1 2027 EPS rising to $1.81 from $1.79. The broad-based upward revisions indicate slightly stronger expected earnings momentum for Commercial Metals.
• Neutral Sentiment: Zacks maintained a “Hold” rating, and the estimate increases were small. The revisions therefore represent incremental support rather than a major change in the investment outlook. Investors may continue to focus on steel demand, pricing, construction activity and the company’s ability to sustain recent earnings growth.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.

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