Zacks Research Cuts Earnings Estimates for Commercial Metals

Key Points

• Zacks Research slightly lowered its FY2027 EPS estimate for Commercial Metals to $7.05 from $7.06 and kept a Hold rating on the stock.
• Commercial Metals beat quarterly expectations, reporting $1.73 EPS on $2.48 billion in revenue, both above consensus, with revenue up 22.9% year over year.
• The stock recently traded around $67.44, while analysts overall remain Moderate Buy with an average price target of $79.45; CEO Peter R. Matt also bought shares in a recent insider purchase.

Commercial Metals Company (NYSE:CMC - Free Report) - Stock analysts at Zacks Research cut their FY2027 EPS estimates for Commercial Metals in a report released on Tuesday, July 14th. Zacks Research analyst Team now anticipates that the basic materials company will earn $7.05 per share for the year, down from their previous estimate of $7.06. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Commercial Metals' current full-year earnings is $6.63 per share. Zacks Research also issued estimates for Commercial Metals' Q4 2027 earnings at $2.04 EPS.

Several other research firms also recently commented on CMC. BNP Paribas Exane upgraded Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 price objective for the company in a report on Wednesday, July 8th. Weiss Ratings raised shares of Commercial Metals from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, June 30th. Morgan Stanley upped their price objective on shares of Commercial Metals from $83.00 to $88.00 and gave the stock an "overweight" rating in a report on Monday, June 22nd. Wells Fargo & Company upped their target price on shares of Commercial Metals from $77.00 to $80.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. Finally, The Goldman Sachs Group assumed coverage on shares of Commercial Metals in a research report on Wednesday, April 1st. They issued a "neutral" rating and a $74.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $79.45.

Commercial Metals Stock Up 1.9%

Shares of NYSE:CMC opened at $67.44 on Thursday. The business's 50 day simple moving average is $70.65 and its two-hundred day simple moving average is $70.65. The firm has a market cap of $7.46 billion, a P/E ratio of 12.70, a PEG ratio of 0.38 and a beta of 1.54. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. Commercial Metals has a 52-week low of $49.66 and a 52-week high of $84.87.

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

Institutional Investors Weigh In On Commercial Metals

Hedge funds have recently modified their holdings of the stock. State Street Corp increased its position in Commercial Metals by 1.5% in the fourth quarter. State Street Corp now owns 6,361,477 shares of the basic materials company's stock worth $440,341,000 after buying an additional 91,104 shares during the last quarter. Boston Partners lifted its position in shares of Commercial Metals by 1.9% during the 3rd quarter. Boston Partners now owns 3,641,930 shares of the basic materials company's stock valued at $208,629,000 after buying an additional 67,139 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Commercial Metals by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 2,926,864 shares of the basic materials company's stock valued at $202,626,000 after buying an additional 86,749 shares during the last quarter. Invesco Ltd. grew its stake in shares of Commercial Metals by 4.8% during the 3rd quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company's stock worth $95,144,000 after acquiring an additional 76,365 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of Commercial Metals by 87.4% during the 1st quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company's stock worth $100,205,000 after acquiring an additional 760,985 shares during the period. Institutional investors own 86.90% of the company's stock.

Insider Buying and Selling at Commercial Metals

In related news, CEO Peter R. Matt bought 8,230 shares of Commercial Metals stock in a transaction dated Friday, July 10th. The stock was purchased at an average cost of $61.30 per share, with a total value of $504,499.00. Following the transaction, the chief executive officer directly owned 181,522 shares of the company's stock, valued at approximately $11,127,298.60. The trade was a 4.75% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.62% of the stock is owned by corporate insiders.

Commercial Metals Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Monday, July 6th were paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Monday, July 6th. Commercial Metals's payout ratio is presently 15.07%.

About Commercial Metals

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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