Zacks Research Issues Optimistic Estimate for CMC Earnings

Key Points

• Zacks Research slightly raised its Q2 2028 EPS estimate for Commercial Metals to $1.52 from $1.51 and kept a Hold rating on the stock.
• Commercial Metals recently beat quarterly expectations, reporting $1.73 EPS on revenue of $2.48 billion versus forecasts of $1.70 EPS and $2.40 billion. Revenue rose 22.9% year over year.
• Analyst sentiment remains broadly positive, with an average rating of Moderate Buy and an average price target of $79.45, while CEO Peter R. Matt also recently purchased shares of the company.

Commercial Metals Company (NYSE:CMC - Free Report) - Zacks Research upped their Q2 2028 earnings estimates for Commercial Metals in a report released on Tuesday, July 14th. Zacks Research analyst Team now anticipates that the basic materials company will post earnings per share of $1.52 for the quarter, up from their prior estimate of $1.51. 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' FY2028 earnings at $7.24 EPS.

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

Several other research firms also recently weighed in on CMC. Barclays began coverage on Commercial Metals in a research note on Thursday, May 21st. They set an "equal weight" rating and a $75.00 price target on the stock. BNP Paribas Exane upgraded shares of Commercial Metals from a "neutral" rating to an "outperform" rating and set a $75.00 price objective on the stock in a research note on Wednesday, July 8th. Jefferies Financial Group raised shares of Commercial Metals from a "buy" rating to a "buy" rating in a report on Friday, June 5th. UBS Group upgraded shares of Commercial Metals from a "neutral" rating to a "buy" rating and boosted their target price for the company from $79.00 to $89.00 in a research report on Wednesday, May 13th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Commercial Metals to a "buy" rating in a report on Friday, May 22nd. One research 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. According to data from MarketBeat, Commercial Metals presently has an average rating of "Moderate Buy" and an average target price of $79.45.

Commercial Metals Stock Performance

Shares of CMC stock opened at $66.14 on Wednesday. The firm has a market capitalization of $7.32 billion, a price-to-earnings ratio of 12.46, a price-to-earnings-growth ratio of 0.37 and a beta of 1.54. 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 fifty day moving average of $70.75 and a 200 day moving average of $70.67. Commercial Metals has a 1 year low of $49.66 and a 1 year high of $84.87.

Commercial Metals Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, July 6th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. Commercial Metals's dividend payout ratio is 15.07%.

Insider Transactions at Commercial Metals

In other news, CEO Peter R. Matt purchased 8,230 shares of the company's stock in a transaction that occurred on Friday, July 10th. The shares were bought at an average price 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 in the company, valued at $11,127,298.60. This represents a 4.75% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Artemis Investment Management LLP acquired a new position in Commercial Metals in the 4th quarter worth about $103,962,000. Norges Bank acquired a new stake in Commercial Metals in the fourth quarter valued at approximately $97,983,000. Bank of America Corp DE grew its holdings in Commercial Metals by 87.4% in the first quarter. Bank of America Corp DE now owns 1,631,213 shares of the basic materials company's stock valued at $100,205,000 after purchasing an additional 760,985 shares during the period. Encompass Capital Advisors LLC purchased a new stake in shares of Commercial Metals in the fourth quarter valued at approximately $41,523,000. Finally, Merewether Investment Management LP purchased a new stake in shares of Commercial Metals in the third quarter valued at approximately $26,847,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

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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