Zacks Research Predicts Lower Earnings for Commercial Metals

Commercial Metals Company (NYSE:CMC) – Equities research analysts at Zacks Research decreased their Q1 2027 earnings per share estimates for Commercial Metals in a research report issued to clients and investors on Thursday, October 29th. Zacks Research analyst Team now expects that the basic materials company will post earnings of $1.51 per share for the quarter, down from their prior estimate of $1.82. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Commercial Metals’ current full-year earnings is $6.71 per share. Zacks Research also issued estimates for Commercial Metals’ Q3 2027 earnings at $1.62 EPS, Q4 2027 earnings at $1.67 EPS, FY2027 earnings at $6.02 EPS, Q1 2028 earnings at $1.53 EPS, Q3 2028 earnings at $1.57 EPS, Q4 2028 earnings at $1.81 EPS, FY2028 earnings at $6.22 EPS and FY2029 earnings at $6.47 EPS.

A number of other analysts have also weighed in on CMC. Citigroup lowered their price objective on shares of Commercial Metals from $85.00 to $75.00 and set a “buy” rating for the company in a research note on Tuesday, July 7th. Wells Fargo & Company reissued an “underperform” rating and set a $70.00 target price on shares of Commercial Metals in a research report on Friday, October 16th. JPMorgan Chase & Co. reduced their price target on shares of Commercial Metals from $83.00 to $80.00 and set an “overweight” rating for the company in a report on Friday, October 9th. Wall Street Zen cut shares of Commercial Metals from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. Finally, Bank of America lowered their price target on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a research report on Thursday, July 9th. Ten investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Commercial Metals presently has a consensus rating of “Moderate Buy” and a consensus target price of $78.73.

Commercial Metals Trading Up 0.9%

Shares of NYSE CMC opened at $66.48 on Monday. Commercial Metals has a twelve month low of $55.97 and a twelve month high of $84.87. The firm has a market cap of $7.31 billion, a PE ratio of 11.32, a price-to-earnings-growth ratio of 4.04 and a beta of 1.55. The business has a fifty day simple moving average of $65.43 and a two-hundred day simple moving average of $69.13. The company has a quick ratio of 1.66, a current ratio of 2.34 and a debt-to-equity ratio of 0.71.

Commercial Metals (NYSE:CMC) last announced its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.14. The company had revenue of $2.66 billion for the quarter, compared to analysts’ expectations of $2.56 billion. Commercial Metals had a return on equity of 17.00% and a net margin of 6.98%. Commercial Metals’s revenue was up 25.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.37 earnings per share.

Institutional Trading of Commercial Metals

Hedge funds have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Commercial Metals in the 2nd quarter worth approximately $2,354,000. Engineers Gate Manager LP acquired a new position in Commercial Metals during the 2nd quarter valued at approximately $2,620,000. California Public Employees Retirement System increased its stake in Commercial Metals by 11.5% during the 1st quarter. California Public Employees Retirement System now owns 277,877 shares of the basic materials company’s stock valued at $17,070,000 after purchasing an additional 28,693 shares in the last quarter. State of Alaska Department of Revenue increased its stake in Commercial Metals by 78.6% during the 3rd quarter. State of Alaska Department of Revenue now owns 28,095 shares of the basic materials company’s stock valued at $1,743,000 after purchasing an additional 12,368 shares in the last quarter. Finally, Bank of America Corp DE purchased a new position in shares of Commercial Metals in the second quarter worth $84,320,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director John McPherson bought 1,390 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were bought at an average price of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the purchase, the director directly owned 21,927 shares of the company’s stock, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.62% of the stock is currently owned by insiders.

Commercial Metals announced that its board has approved a stock buyback program on Wednesday, August 5th that authorizes the company to repurchase $600 million in shares. This buyback authorization authorizes the basic materials company to purchase up to 7.5% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Commercial Metals Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Investors of record on Wednesday, October 28th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.80 dividend on an annualized basis and a yield of 1.2%. Commercial Metals’s dividend payout ratio (DPR) is presently 13.63%.

About Commercial Metals

Commercial Metals Company (NYSE:CMC) is a steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company’s electric-arc-furnace steel mills.