Zacks Research Cuts Earnings Estimates for Commercial Metals

Commercial Metals Company (NYSE:CMC) – Stock analysts at Zacks Research reduced their Q2 2027 earnings per share estimates for shares of Commercial Metals in a research note issued on Thursday, October 29th. Zacks Research analyst Team now forecasts that the basic materials company will post earnings of $1.21 per share for the quarter, down from their previous estimate of $1.45. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Commercial Metals’ current full-year earnings is $6.95 per share. Zacks Research also issued estimates for Commercial Metals’ Q2 2028 earnings at $1.31 EPS.

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

Several other research firms have also recently commented on CMC. Bank of America cut their target price on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Barclays decreased their price target on shares of Commercial Metals from $80.00 to $72.00 and set an “equal weight” rating on the stock in a research report on Tuesday, October 20th. Weiss Ratings upgraded shares of Commercial Metals from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, October 16th. Wall Street Zen downgraded shares of Commercial Metals from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. Finally, Wells Fargo & Company reaffirmed an “underperform” rating and set a $70.00 price objective on shares of Commercial Metals in a research report on Friday, October 16th. Ten research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Commercial Metals currently has an average rating of “Moderate Buy” and a consensus price target of $78.73.

Commercial Metals Stock Performance

Shares of NYSE CMC opened at $65.54 on Friday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.66 and a current ratio of 2.34. The firm has a market cap of $7.21 billion, a price-to-earnings ratio of 11.17, a P/E/G ratio of 3.80 and a beta of 1.53. The business’s 50-day simple moving average is $65.44 and its 200-day simple moving average is $69.26. Commercial Metals has a 52 week low of $55.97 and a 52 week high of $84.87.

Commercial Metals announced that its board has authorized a share repurchase plan on Wednesday, August 5th that allows the company to repurchase $600 million in shares. This repurchase authorization allows the basic materials company to buy up to 7.5% of its shares through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Commercial Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 11th. Shareholders of record on Wednesday, October 28th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Wednesday, October 28th. Commercial Metals’s dividend payout ratio is 13.63%.

Insider Buying and Selling

In other Commercial Metals news, Director John McPherson acquired 1,390 shares of the stock in a transaction dated Thursday, August 13th. The shares were bought at an average cost of $71.92 per share, for a total transaction of $99,968.80. Following the completion of the acquisition, 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. Company insiders own 0.62% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. USA Financial Formulas lifted its holdings in shares of Commercial Metals by 67.6% during the first quarter. USA Financial Formulas now owns 496 shares of the basic materials company’s stock worth $30,000 after buying an additional 200 shares in the last quarter. Reyes Financial Architecture Inc. acquired a new position in shares of Commercial Metals in the third quarter valued at about $31,000. Global Retirement Partners LLC bought a new position in Commercial Metals during the second quarter worth about $34,000. Root Financial Partners LLC bought a new position in Commercial Metals during the third quarter worth about $41,000. Finally, Integrated Wealth Concepts LLC bought a new position in Commercial Metals during the second quarter worth about $63,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.