Zacks Investment Research Upgrades Commercial Metals (NYSE:CMC) to “Strong-Buy”

Commercial Metals (NYSE:CMC) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. The brokerage presently has a $15.00 price objective on the basic materials company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 3.66% from the stock’s previous close.

According to Zacks, “Commercial Metals is poised to gain as construction activity in the United States continues to improve and will likely to translate into improved demand for steel and rebar. Construction demand in Poland and recent investment in the country fortify the company’s prospects. Solid fabrication backlog and rebar-margin environment are likely to aid the company's fiscal 2020 results. It has completed the ramp-up of production volumes at second micro mill in Durant, OK with better-than-expected returns, supported by strong rebar demand and elevated metal margins. The company’s optimization efforts and expanded domestic mill network will yield benefits in the days ahead. However, inflationary pressures on manufacturing costs will weigh on the company's results. Moreover, higher debt levels and interest expense remain concerns.”

Several other equities research analysts have also recently weighed in on the company. Deutsche Bank upgraded Commercial Metals from a “hold” rating to a “buy” rating and increased their price objective for the stock from $18.50 to $25.00 in a report on Tuesday, November 26th. ValuEngine cut Commercial Metals from a “sell” rating to a “strong sell” rating in a report on Tuesday, February 4th. BMO Capital Markets started coverage on Commercial Metals in a report on Tuesday, November 26th. They issued a “market perform” rating and a $23.00 price objective for the company. Finally, Exane BNP Paribas started coverage on Commercial Metals in a report on Thursday, November 14th. They issued an “outperform” rating for the company. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, four have given a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $19.10.

Shares of Commercial Metals stock traded up $0.05 during trading on Tuesday, hitting $14.47. 19,799 shares of the stock traded hands, compared to its average volume of 1,252,033. The company has a quick ratio of 2.27, a current ratio of 3.35 and a debt-to-equity ratio of 0.69. The stock has a market cap of $1.71 billion, a price-to-earnings ratio of 6.75, a PEG ratio of 1.81 and a beta of 1.70. The firm’s fifty day moving average is $20.27 and its 200-day moving average is $19.80. Commercial Metals has a 52 week low of $13.27 and a 52 week high of $24.04.

Commercial Metals (NYSE:CMC) last issued its earnings results on Monday, January 6th. The basic materials company reported $0.73 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.19. Commercial Metals had a return on equity of 18.40% and a net margin of 4.41%. The company had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.44 billion. During the same period in the prior year, the business posted $0.35 EPS. Commercial Metals’s quarterly revenue was up 8.4% compared to the same quarter last year. On average, analysts forecast that Commercial Metals will post 2.53 earnings per share for the current fiscal year.

Hedge funds have recently bought and sold shares of the stock. Sunbelt Securities Inc. bought a new position in Commercial Metals during the 3rd quarter valued at approximately $458,000. Millennium Management LLC lifted its stake in Commercial Metals by 9.1% in the 3rd quarter. Millennium Management LLC now owns 1,046,612 shares of the basic materials company’s stock valued at $18,190,000 after buying an additional 87,055 shares in the last quarter. First Trust Advisors LP lifted its stake in Commercial Metals by 10.0% in the 3rd quarter. First Trust Advisors LP now owns 125,187 shares of the basic materials company’s stock valued at $2,176,000 after buying an additional 11,418 shares in the last quarter. Stifel Financial Corp purchased a new position in Commercial Metals in the 3rd quarter valued at about $455,000. Finally, Los Angeles Capital Management & Equity Research Inc. lifted its stake in Commercial Metals by 88.5% in the 4th quarter. Los Angeles Capital Management & Equity Research Inc. now owns 56,925 shares of the basic materials company’s stock valued at $1,268,000 after buying an additional 26,730 shares in the last quarter. 88.17% of the stock is owned by institutional investors.

Commercial Metals Company Profile

Commercial Metals Company manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. It operates through four segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. The Americas Recycling segment processes and sells 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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Analyst Recommendations for Commercial Metals (NYSE:CMC)

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